Towing and trailering equipment supplier Horizon Global Corp. announced that on Jan. 3 it received a letter from the New York Stock Exchange (NYSE) informing management of its noncompliance with NYSE continued listing standards because the company’s average market capitalization over a recent consecutive 30 trading-day period has been less than $50,000,000 and, at the same time, stockholders’ equity was less than $50,000,000.
According to a news release, Horizon Global has 45 business days to notify the NYSE of its intent to cure this deficiency which the company intends to do so on a timely basis. In accordance with NYSE procedures, the company will submit a plan to the NYSE demonstrating how it intends to regain compliance with the continued listing standards within the allotted 18-month timeframe.
The notice from the NYSE has no immediate impact on the listing of the company’s common stock, which will continue to trade on the NYSE under the symbol “HZN”, but will be assigned a “.BC” indicator to signify that Horizon Global is not currently in compliance with NYSE continued listing standards. The NYSE notification does not affect Horizon Global’s business operations, its Securities and Exchange Commission (SEC) reporting requirements, or any of the company’s material debt agreements.
Horizon Global President and CEO Carl Bizon commented, “Horizon Global has experienced challenging conditions in 2018, but we have made considerable progress in improving our operations. With the completion of our Action Plan for the Americas, we have demonstrated the team’s ability to identify opportunities and execute business initiatives that will drive improved performance and profitability. We recently announced operational challenges in our Europe-Africa segment and have put new leadership in place to implement business improvement initiatives to stabilize this business in the near term and drive improved profitability over the longer term. Our market capitalization has suffered in recent months as the business is undergoing a great deal of transition. We look forward to submitting a plan to the NYSE that will outline actions intended to bring Horizon Global back into compliance with the NYSE continued listing standards and drive improved performance in our business.”