Regis, the Minnesota-based hair-salon operator, experienced a significant drop in its shares after the New York Stock Exchange (NYSE) initiated the process of delisting. The stock plummeted by 22% to $7.28 during premarket trading, resulting in a year-to-date decrease of 62% as of the market’s close on Wednesday.
On Thursday morning, Regis announced that NYSE Regulation had decided to commence delisting proceedings against the company’s common stock due to its failure to comply with listing standards. Specifically, Regis had previously disclosed that its stock did not meet the requirement of maintaining either $50 million in stockholders’ equity or $50 million in total market capitalization on a 30-trading day average basis.
Although Regis’ shares will still be listed and traded on the exchange, the company is currently considering whether to request a review of NYSE’s determination. However, it should be noted that a delisting will only occur if Regis chooses not to appeal the decision by December 28, or if it decides against an appeal altogether. Additionally, if the subsequent review concludes that trading should be suspended, it could also lead to delisting.
Regis’ future on the NYSE remains uncertain as it contemplates its options.