Lument Finance Trust Receives NYSE Continued Listing Standard Notice

Rhea-AI Summary

Lument Finance Trust (NYSE: LFT) has received a notice from the New York Stock Exchange that it is not in compliance with Section 802.01C of the NYSE Listed Company Manual because the average closing price of its common stock was below $1.00 for a consecutive 30 trading-day period.

The notice is a deficiency notice, not a delisting, and LFT’s common stock continues to trade on the NYSE. The company has a six-month cure period ending January 24, 2027 to regain compliance by achieving a closing and 30‑day average share price of at least $1.00. LFT is monitoring its share price and considering alternatives, including a potential reverse stock split, subject to required approvals, but has not committed to any specific action.

Positive

• Six-month NYSE cure period through January 24, 2027 to regain compliance
• LFT common stock continues to be listed and traded on the NYSE during cure period
• Company is considering alternatives, including a possible reverse stock split, to address share price

Negative

• Non-compliance with NYSE $1.00 minimum average share price listing standard
• Risk of eventual NYSE delisting if compliance is not regained within cure period
• Potential need for corporate actions such as a reverse stock split to restore compliance

News Explained

The contemplated reverse stock split would reduce the number of common shares and proportionally raise the per-share price, without changing company value through the split itself; LFT has not committed to taking this step.

Market Context

Recent insider records show William A. Houlihan bought 20,000 shares across two transactions. That p...

Analysis

Recent insider records show William A. Houlihan bought 20,000 shares across two transactions. That platform record provides separate context, while the cure period and potential reverse split remained unresolved; short positioning was low.

Key Figures

Minimum average closing price: $1.00 Review period: 30 trading-day period Cure period: Six months +1 more

4 metrics

Minimum average closing price $1.00 NYSE Section 802.01C requirement over 30 consecutive trading days

Review period 30 trading-day period Average closing price period underlying the deficiency notice

Cure period Six months Period available to regain compliance

Cure-period end date January 24, 2027 Deadline stated for the six-month cure period

Historical Context

5 past events · Latest: Jun 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 10	Quarterly dividend	Positive	+7.0%	Declared quarterly common and preferred stock dividends payable July 15, 2026.
May 15	First-quarter earnings	Negative	-7.0%	Reported a GAAP net loss attributable to common shareholders for first-quarter 2026.
May 12	Earnings call scheduling	Neutral	-2.6%	Announced Form 10-Q filing and investor call dates for first-quarter results.
Mar 23	Annual results	Negative	-10.9%	Reported fourth-quarter and full-year GAAP net losses attributable to common shareholders.
Mar 19	Dividend declaration	Positive	+3.1%	Declared common and preferred dividends and announced year-end earnings release dates.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

LFT's historical reactions were generally aligned with the direction of dividend and earnings-related news, including a 6.96% decline after its first-quarter results.

Key Terms

notice of deficiency, reverse stock split, continued listing standards

3 terms

notice of deficiency regulatory

"The notice is a notice of deficiency, not delisting"

A notice of deficiency is a formal written communication from a tax or regulatory authority saying it believes an entity owes additional tax, penalties, or other adjustments and setting out the proposed changes and the timeframe to respond or challenge. Think of it like an itemized bill or accusation that the company can dispute through administrative or court procedures. Investors watch these notices because they can indicate potential cash outflows, contingent liabilities, or unresolved disputes that may affect earnings and balance-sheet strength.

reverse stock split financial

"Such alternatives may include a reverse stock split"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

continued listing standards regulatory

"subject to the Company's continued compliance with the NYSE's other continued listing standards"

Ongoing rules a stock exchange requires a listed company to meet to keep its shares trading publicly, such as minimum share price, market value, timely financial reports, and governance practices. Think of it as a membership checklist for a club: falling short can lead to warnings or removal from the exchange, which can sharply reduce liquidity, investor confidence, and a stock’s value. Investors watch these standards to gauge regulatory risk and the stability of their holdings.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, July 30, 2026 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("LFT" or the "Company") today announced that it received notice from the New York Stock Exchange (the "NYSE") that the Company 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 was less than $1.00 over a consecutive 30 trading-day period.

The notice is a notice of deficiency, not delisting, and does not currently impact the listing and trading of the Company's common stock on the NYSE.

As required by NYSE rules, the Company intends to timely notify the NYSE of its intent to regain compliance with the minimum share price requirement. The Company may regain compliance at any time during the six-month cure period, which ends on January 24, 2027, if, on the last trading day of any calendar month during the cure period, the Company's common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on such date.

The Company's common stock will continue to be listed and trade on the NYSE during the cure period, subject to the Company's continued compliance with the NYSE's other continued listing standards.

The Company intends to continue monitoring the market price of its common stock and is considering all available alternatives to regain compliance with the NYSE minimum share price requirement. Such alternatives may include a reverse stock split, subject to any required corporate approvals. The Company has not committed to any particular course of action at this time. 

About LFT

LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments. The Company primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets. LFT is externally managed and advised by Lument Investment Management, LLC, a Delaware limited liability company.

Additional Information and Where to Find It

Investors, security holders and other interested persons may find additional information regarding the Company at the SEC's Internet site at http://www.sec.gov/, the Company website www.lumentfinancetrust.com, or by directing requests to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations.

Forward Looking Statements

Certain statements included in this press release constitute forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. These forward-looking statements include, without limitation, statements regarding the Company's plans, intentions, expectations, objectives or ability to regain compliance with the NYSE's continued listing standards, including a potential reverse stock split and intention to consider alternatives to cure the NYSE continued listing requirement deficiency. You are cautioned not to place undue reliance on forward-looking statements in this press release and should consider carefully the factors described in Part I, Item IA "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which is available on the SEC's website at www.sec.gov, and in the Company's other filings with the SEC, when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Lument Finance Trust, Inc.

FAQ

What NYSE notice did Lument Finance Trust (NYSE: LFT) receive on July 30, 2026?

Lument Finance Trust received a NYSE deficiency notice for not meeting the $1.00 minimum average share price requirement. According to Lument Finance Trust, its average closing price was below $1.00 over a consecutive 30 trading-day period, triggering Section 802.01C non-compliance.

Is Lument Finance Trust (LFT) being delisted from the NYSE after this notice?

Lument Finance Trust is not being delisted at this time; it received a deficiency notice only. According to Lument Finance Trust, its common stock will continue to be listed and traded on the NYSE during the cure period, subject to other continued listing standards.

What is the cure period deadline for Lument Finance Trust (LFT) to regain NYSE compliance?

The cure period for Lument Finance Trust runs until January 24, 2027. According to Lument Finance Trust, it can regain compliance during this six-month period if its stock closes at or above $1.00 and maintains a 30‑day average closing price of at least $1.00.

How can Lument Finance Trust (NYSE: LFT) regain compliance with the NYSE $1.00 minimum price?

Lument Finance Trust can regain compliance by achieving a closing and 30‑day average share price of at least $1.00 within the cure period. According to Lument Finance Trust, this must occur on the last trading day of any calendar month before January 24, 2027.

Is Lument Finance Trust planning a reverse stock split to meet NYSE listing standards?

A reverse stock split is one of several options Lument Finance Trust is considering to regain compliance. According to Lument Finance Trust, any reverse split would require corporate approvals, and the company has not committed to a specific course of action yet.

What does the NYSE non-compliance notice mean for LFT shareholders and trading liquidity?

LFT shares remain listed and tradeable on the NYSE during the cure period, so immediate liquidity is unchanged. According to Lument Finance Trust, only failure to regain compliance by January 24, 2027 could ultimately lead to delisting risk under NYSE rules.