What’s going on:
On Tuesday, WeWork said that it had received a non-compliance notice from the New York Stock Exchange due to its stock’s closing price remaining below $1 on average over the last 30 consecutive trading days, according to Reuters.
Shares of the company have continually experienced a downward trend with shares dropping 65 percent year-to-date. On Wednesday morning, WeWork shares opened at $0.47 per share.
The non-compliance notice does not immediately lead to the shared workspace provider getting delisted from the exchange. The company said it has a six-month period to reclaim compliance before being delisted.
Why it matters:
In 2019, WeWork was valued at $47 billion dollars. WeWork’s 65 percent year-to-date drop in share values results in a market capitalization of $360.9 million, according to Refinitiv data.
How it’ll impact the future:
WeWork intends to respond to the New York Stock Exchange within ten business days of receiving the non-compliance notice, according to Business Insider.
While WeWork has failed to turn a quarterly profit since being listed as a publicly traded company in 2021, it has been working to cut debt. In February, the company announced its intent to eliminate 300 positions and shut down 40 struggling establishments in the United States.
