DALLAS -- (Business Wire)
EXCO Resources, Inc. (NYSE:XCO) (“EXCO” or the “Company”) today
announced that on July 30, 2015, EXCO was notified by the New York Stock
Exchange (“NYSE”) of its noncompliance with continued listing standards
because the average closing price of its common shares over a period of
30 consecutive trading days had fallen below $1.00 per share, which is
the minimum average closing price per share required to maintain listing
on the NYSE.
Under the NYSE rules, during the six-month period from the date of the
NYSE notice, EXCO can regain compliance if the price per share of EXCO’s
common shares on the last trading day of any calendar month within such
period and the 30 trading day average price per common share for that
month is at least $1.00. During this period, subject to EXCO’s
compliance with other NYSE continued listing requirements, EXCO’s common
shares will continue to be traded on the NYSE under the symbol “XCO” but
will have an added designation of “.BC” to indicate the status of the
common shares as below compliance.
EXCO intends to notify the NYSE of its intent to cure this noncompliance
and is currently exploring its options for regaining compliance,
including by way of effecting a reverse share split, subject to the
approval of EXCO’s shareholders. The Company anticipates that a reverse
share split, when completed, will cure the deficiency and the Company
will regain compliance with the NYSE continued listing requirement. If
EXCO is unable to regain compliance, the NYSE will initiate procedures
to suspend and delist EXCO’s common shares.
The NYSE notification does not affect EXCO’s business operations or its
Securities and Exchange Commission (“SEC”) reporting requirements and
does not conflict with or cause an event of default under any of the
Company’s material debt agreements. Furthermore, the NYSE notice is not
related to the NYSE continued listing requirement that a listed company
have a market capitalization of at least $50 million. Based on the
closing price of the Company’s common stock on August 3, 2015, the
Company’s market capitalization was approximately $158 million. A
reverse share split would not be expected to affect the Company’s market
capitalization.
Harold L. Hickey, EXCO’s Chief Executive Officer and President, said,
“The negative commodity price outlook has weighed on the market
sentiment for small-cap E&P companies and, as a group, we’ve been
negatively impacted. Our shares have traded below $1.00 per share for a
period of time long enough for the NYSE to issue a non-compliance
notice. The notice begins a lengthy process of approximately six months,
during which EXCO can regain compliance by trading above an average
price of $1.00 for 30 trading days. Regaining compliance can be
accomplished by improvements in market sentiment or a reverse share
split of our equity that would be subject to shareholder approval. We
will be closely monitoring the situation, and we expect to remain listed
on the NYSE.”
EXCO Resources, Inc. is an oil and natural gas exploration,
exploitation, development and production company headquartered in
Dallas, Texas with principal operations in Texas, North Louisiana and
the Appalachia region.
Additional information about EXCO Resources, Inc. may be obtained by
contacting Chris Peracchi, EXCO’s Vice President of Finance and Investor
Relations, and Treasurer, at EXCO’s headquarters, 12377 Merit Drive,
Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by
visiting EXCO’s website at www.excoresources.com.
EXCO’s SEC filings and press releases can be found under the Investor
Relations tab.
This release may contain forward-looking statements relating to future
financial results, business expectations and business transactions.
Actual results may differ materially from those predicted as a result of
factors over which EXCO has no control. Such factors include, but are
not limited to: the continued listing of EXCO’s common shares on the
NYSE, the trading price of EXCO’s common shares on the NYSE, continued
volatility in the oil and gas markets, the estimates of reserves,
commodity price changes, regulatory changes and general economic
conditions. These risk factors are included in EXCO’s reports on file
with the SEC. Except as required by applicable law, EXCO undertakes no
obligation to publicly update or revise any forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150803006356/en/
Contacts:
EXCO Resources, Inc.
Chris Peracchi, 214-368-2084
Vice
President of Finance and Investor Relations, and Treasurer
Source: EXCO Resources, Inc.
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