Minneapolis-based Regis faces delisting from New York Stock Exchange

The salon company was told it has fallen below the threshold for continued listing.

June 15, 2022 at 4:24PM
Regis said it will submit a plan to regain compliance with New York Stock Exchange standards. (Star Tribune file/The Minnesota Star Tribune)

The New York Stock Exchange notified Regis Corp. that because of its sliding market capitalization and shareholder equity figures, it faces possible delisting.

Shares of the Minneapolis-based Regis, which announced the news Wednesday, have fallen 70% since the start of the year. Shares closed Wednesday at 59 cents, up 7.7% on a day when the general stock markets also had an up day.

In 2018, the stock was trading between $14.42 and $21.83.

Regis said in the Wednesday news release that it will submit a plan to regain compliance with New York Stock Exchange (NYSE) standards.

The salon company has been in a yearslong transformation to an all-franchise model and has seen a number of CEO changes during that time. The transition to an all-franchise model was completed last year, but it has done little to revive the company's share price.

The NYSE has a number of standards that companies must maintain to continue being listed on their exchange. Among them: Companies must maintain a share price above $1 a share for 30 consecutive days, and market capitalization and total shareholder equity must be above $50 million.

On June 10, NYSE notified Regis that its average share price over the previous 30 trading days was 89 cents a share and that its market cap over that period averaged $41 million. Regis' last reported stockholders' equity was $11.1 million as of March 31.

The notice is the first step in a long process before a company is delisted. The NYSE allows companies 45 days to submit a plan to regain compliance with listing standards and 18 months to regain compliance.

about the writer

about the writer

Patrick Kennedy

Reporter

Business reporter Patrick Kennedy covers executive compensation and public companies. He has reported on the Minnesota business community for more than 25 years.

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