The New York Stock Exchange has warned Bright Health Group that it may be delisted for its failure to meet the exchange's standards, with its average closing price falling below the $1 per share threshold.
Bright Health receives delisting warning from New York Stock Exchange
The Bloomington-based company's stock has lost 95% of its value since it went public in June 2021.
December 12, 2022 at 11:21PM
The Bloomington-based health insurer's average stock price failed to reach the minimum requirement for the 30-day trading period ended Dec. 2. Bright Health has six months to regain compliance from the date it received the notice, Dec. 6.
In a statement Monday, Bright Health said it "intends to consider available alternatives, including, but not limited to, a reverse stock split, subject to stockholder approval no later than at the company's next annual meeting of stockholders, if necessary, to regain compliance."
It's the latest challenge in a yearlong series of setbacks for the young company.
Founded in 2015, Bright Health went public in June 2021 at $18 per share. The startup raised $924 million at its initial public offering, making it the largest-ever IPO in Minnesota history.
But since then, the stock has lost 95% of its value following a number of missteps.
The company's challenges included risk adjustment miscalculations and trouble with claims processing that was exacerbated by a surge in COVID-19 cases in 2021.
In October, the company announced it was dropping individual and family health coverage, a major shift that will cut its revenue in half. Bright is exiting that business in 15 states.
J.P. Morgan senior analyst Lisa Gill called it "a complete reversal of [Bright Health's] initial strategy."
The company reported third-quarter revenue of $1.6 billion, a 51% gain compared with a year ago, while reporting a net loss of $259.3 million.
The company's stock closed on Monday at 87 cents a share.
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