Equus Receives Notice of Non-Compliance with New York Stock Exchange Share Price Rule

Rhea-AI Summary

Equus Total Return (NYSE: EQS) has received a notice of non-compliance from the NYSE on May 15, 2025, due to its average closing stock price falling below $1.00 over a consecutive 30-day trading period. The company has a six-month cure period to regain compliance by achieving a closing price and 30-day average closing price of at least $1.00. To address this issue, Equus plans to consider various alternatives, including a potential reverse stock split, which will be proposed at the upcoming annual stockholder meeting on June 26, 2025. The notice does not immediately affect the company's NYSE listing or trading status, and Equus will continue its normal business operations and SEC reporting requirements.

Positive

• Company has six months to cure the deficiency and regain compliance
• Stock continues to trade on NYSE during the cure period
• Company has already proposed authorization for reverse stock split at upcoming stockholder meeting

Negative

• Stock price has fallen below $1.00 average over 30 trading days
• Non-compliance with NYSE listing requirements
• Potential reverse stock split may be necessary, which could impact stock liquidity

Insights

Securities Market Expert

NYSE non-compliance notice threatens EQS listing; company has six months to get share price above $1, considering reverse split.

Equus Total Return has received a notice from the NYSE indicating non-compliance with continued listing standards due to its average closing share price falling below $1.00 over 30 consecutive trading days. This represents a significant regulatory challenge for the company, though it's important to understand the distinction that this is a deficiency notice, not an immediate delisting action.

The company now enters a standard six-month cure period during which it must restore compliance by achieving a closing share price of at least $1.00 and maintaining an average closing price at that level over a 30-day trading period. Equus has already indicated it will notify the NYSE by May 25th of its intent to cure this deficiency.

Management is considering multiple remediation options, with a reverse stock split being the most likely solution. This would mathematically increase the share price by reducing the number of outstanding shares. The company has proactively included this option in proposals for its upcoming June 26th annual meeting. Under NYSE rules, if stockholders approve such action, compliance can be restored if the price promptly exceeds $1.00 and remains above this threshold for at least the following 30 trading days.

During this remediation period, Equus shares will continue trading on the NYSE, and the company's operational and SEC reporting requirements remain unchanged. However, failure to address this issue within the allotted timeframe could ultimately result in delisting, which would significantly impact trading liquidity and institutional investor access.

Company Intends to Regain Compliance with NYSE Rule 
Notice Has No Immediate Impact on the Listing or Trading of Equus Common Stock

HOUSTON, May 20, 2025 (GLOBE NEWSWIRE) -- Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Company”) announced today that it was notified by the New York Stock Exchange (the “NYSE”) on May 15, 2025, that it is not in compliance with Section 802.01C of the NYSE Listed Company Manual because the average closing price of the Company’s Common Stock (“Common Stock”) was less than $1.00 over a consecutive 30 trading-day period, which is the minimum average closing price required to maintain continued listing on the NYSE. The notice is a notice of deficiency, not delisting, and does not currently affect the listing or trading of the Company’s Common Stock on the NYSE.

The Company plans to notify the NYSE by May 25, 2025 that it intends to cure the average closing stock price deficiency and to return to compliance with the NYSE's continued listing standards. The Company can regain compliance at any time within the six-month period following receipt of the NYSE's notice if on the last trading day of any calendar month during the cure period, the Company has (i) a closing share price of at least $1.00 and (ii) an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.

The Company intends to consider available alternatives to cure the stock price noncompliance including, but not limited to, a reverse stock split, authorization for which has been proposed in connection with the Company’s upcoming annual meeting of stockholders scheduled for June 26, 2025. Under the NYSE’s rules, if the Company determines that it will cure the stock price deficiency by taking an action that will require stockholder approval at its next annual meeting of stockholders, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days.

The Company’s Common Stock will continue to be listed and trade on the NYSE during this period, subject to the Company’s ongoing compliance with the NYSE's other continued listing standards. Furthermore, the notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the U.S. Securities and Exchange Commission.

About Equus

The Company is a business development company that trades as a closed-end fund on the New York Stock Exchange under the symbol "EQS". Additional information on the Company may be obtained from the Company’s website at www.equuscap.com.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the performance of the Company, including our ability to achieve our expected financial and business objectives, and the other risks and uncertainties described in the Company’s filings with the SEC. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Except as required by law, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statements are material.

Contact:

Equus Total Return, Inc.
1-888-323-4533

FAQ

Why did Equus (EQS) receive a notice from NYSE in May 2025?

Equus received a notice because its average closing stock price fell below $1.00 over a consecutive 30-day trading period, violating NYSE's minimum price requirement for continued listing.

Will Equus (EQS) be delisted from the NYSE immediately?

No, this is a notice of deficiency, not delisting. The stock continues to trade on NYSE while Equus has a six-month period to cure the price deficiency.

How can Equus (EQS) regain compliance with NYSE listing requirements?

Equus can regain compliance if it achieves a closing share price of at least $1.00 and a 30-day average closing price of $1.00 within the six-month cure period.

What solutions is Equus (EQS) considering to address the NYSE compliance issue?

Equus is considering various alternatives, including a reverse stock split, which will be proposed at the annual stockholder meeting on June 26, 2025.

When is the deadline for Equus (EQS) to regain NYSE compliance?

Based on the May 15, 2025 notice, Equus has approximately six months, until mid-November 2025, to regain compliance with NYSE's share price requirements.