Alarm bell from the New York Stock Exchange. Natuzzi risks (again) the delisting. As for the Apulian brand of upholstery, as in December 2018, there is the possibility of being cancelled from the New York Stock Exchange.
Natuzzi risks (again) the delisting
Two issues are under observation: the average price of the Natuzzi stock, which fell, in April 2020, i.e. in full Coronavirus emergency, below the dollar. A new alert, therefore, on the American Depositary Receipt (ADR), the trading certificates necessary for the listing on the New York stock exchange for shares of non-US companies. Furthermore, since March 17, 2020, Natuzzi has not complied with another listing rule in the NYSE Listed Company Manual, which requires maintaining an average global market capitalisation of no less than 15 million dollars.
Reaction times
There is still time for Natuzzi to regain compliance with ADR and capitalisation standards. Also because, due to the COVID-19 emergency, the NYSE monitoring bodies suspended the effectiveness of the requirements until June 30, 2020. So the Apulian company can regain ADR compliance, on paper, by December 16, 2020. However, the company’s current capitalisation, amounting to 6 million dollars, could still trigger a delisting process of the Natuzzi stock, a listing started in 1993.
Countermoves
Meanwhile, from Santeramo, a message to the New York Stock Exchange has been sent on April 21st. For now, the upholstered furniture multinational does not intend to undertake actions such as the aggregation of ADRs as done in the past, which also require expensive practices in terms of time and resources, such as the deposit contracts exchange. The idea is to wait for the end of June 2020, and also to understand if the suspension of the effectiveness of the requirements will be extended by the New York Stock Exchange due to the Coronavirus emergency, or if the 30 days of monitoring will start.
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