The New York Stock Exchange is again threatening to remove Vancouver-based BowFlex. This time, the company’s valuation is at issue.
The exchange notified the fitness-equipment company on Nov. 27 that it no longer meets the NYSE’s average global market capitalization standard.
“The same price deficiency BowFlex and other companies are facing right now has triggered this notice,” said CEO Jim Barr Monday.
Market capitalization is the value of a publicly traded company, found by multiplying the number of shares by their current value.
BowFlex, formerly Nautilus, has traded at less than a dollar per share since September, which led to its first delisting notification that month.
Barr said the company takes the notice seriously and plans to continue its relationship with the New York Stock Exchange.
The company’s strategy to comply with the exchange’s rules is unchanged, Barr added.
Companies on the New York Stock Exchange must have at least $50 million in market capitalization over a consecutive 30-day period to comply with the exchange’s listing standards.
The exchange also requires stockholder equity to be at least $50 million.
Barr said in October that he thought his company was undervalued and that BowFlex is “well positioned to navigate the current market conditions.”
Barr added that his team has tried to pay down debts and enhance its balance sheet. Nautilus sold its namesake brand this summer, ultimately changing its corporate name to BowFlex.
Hundreds of companies are delisted from the country’s big stock exchanges each year. More than 400 have been delisted in 2023, according to StockAnalysis.com.
Delisted stocks usually move to trading over the counter, which doesn’t have listing standards.
Some delisted companies can be relisted by another major exchange. Rental car company Hertz Global Holdings was relisted on the Nasdaq in 2021, after being delisted by the New York Stock Exchange in 2020.
The New York Stock Exchange gives companies 45 days to submit a plan describing what the company will do to get back into compliance. BowFlex will have 18 months to raise its market capitalization to the stock exchange’s listing standard.
BowFlex’s stock, which trades as BFX, closed Monday at 55 cents per share, down from Friday’s 57 cents per share closing price.
