Harte Hanks, Inc. (NYSE: HHS) (the “Company”) has announced that it was notified (the “Notice”) on October 31, 2018 by the New York Stock Exchange, Inc. (the “NYSE”) that it was not in compliance with NYSE’s continued listing standards because the Company’s average market capitalization was less than $50 million over a consecutive 30 trading-day period and the stockholders’ equity of the Company was less than $50 million. As set forth in the Notice, as of October 26, 2018, the 30-trading day average market capitalization of the Company was approximately $42.9 million and the Company’s last reported stockholders’ deficit as of June 30, 2018 was approximately ($7.3) million.
In accordance with NYSE rules, the Company intends to notify the NYSE within 10 business days of receipt of the Notice that the Company intends to cure the deficiency.
Under the NYSE rules, the Company has 45 days from the receipt of the Notice to submit a plan advising the NYSE of definitive action the Company has taken, or is taking, that would bring the Company into conformity with continued listed standards within 18 months of receipt of the Notice. Within 45 days of receipt of the plan, the NYSE will make a determination as to whether the Company has made a reasonable demonstration of an ability to come into conformity with the relevant standards in the 18 month period. If the NYSE accepts the plan, the Company’s common stock will continue to be listed and traded on the NYSE during the 18 month cure period, subject to the Company’s compliance with other continued listing standards, and the Company will be subject to quarterly monitoring by the NYSE for compliance with the plan. During this period, the Company’s common stock will continue to be listed and traded on the NYSE, subject to the Company’s compliance with the other NYSE listing standards. The Company’s common stock will continue to trade under the symbol “HHS,” but will have an added designation of “.BC” to indicate the status of the common shares as “below compliance.”
The Company is taking appropriate steps pursuant to the NYSE listing standards to regain compliance within the prescribed timeframe. As previously disclosed, the Company has created an Office of the CEO comprised of two executive officers and two members of the Company’s board of directors that previously served in executive roles at other companies. In addition to helping the company with its strategic direction, the Office of the CEO has made significant progress in restructuring activities, including headcount reductions, and has identified other areas that could provide the company with significant costs savings. The Office of the CEO is aiming to complete most of these restructuring activities by the end of the first quarter of 2019.
The NYSE notification does not affect the Company’s business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company’s material debt or other agreements.
Source: Harte-Hanks Press Release