Lument Finance Trust (NYSE: LFT) flagged by NYSE for sub-$1 share price
Rhea-AI Filing Summary
Lument Finance Trust, Inc. reported that on July 24, 2026 it received a deficiency notice from the New York Stock Exchange because the average closing price of its common stock was below $1.00 over a consecutive 30 trading-day period, triggering Section 802.01C of the NYSE Listed Company Manual. The notice does not constitute delisting and the stock continues to trade on the NYSE, subject to compliance with other continued listing standards.
The company has a six-month cure period, ending January 24, 2027, during which it can regain compliance if on the last trading day of any calendar month its common stock closes at or above $1.00 and has a 30 trading-day average at or above that level. Management is monitoring the share price and is considering alternatives, including a potential reverse stock split, though no specific action has been approved.
Positive
- None.
Negative
- NYSE price-deficiency notice signals that Lument Finance Trust’s common stock traded below the $1.00 minimum average price for 30 consecutive trading days, creating a risk of eventual delisting if compliance is not restored within the six-month cure period ending January 24, 2027.
8-K Event Classification
3 items: 3.01, 7.01, 9.01
3 items
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice or transferred its listing to a different exchange.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Minimum share price threshold: $1.00
Non-compliance measurement period: 30 trading-day period
Cure period length: Six-month cure period
+1 more
4 metrics
Minimum share price threshold
$1.00
Required closing and 30 trading-day average price to meet NYSE Section 802.01C
Non-compliance measurement period
30 trading-day period
Average closing price of common stock was below $1.00 over this span
Cure period length
Six-month cure period
Time allowed by NYSE for the company to regain share price compliance
Cure period end date
January 24, 2027
Date through which the company can regain compliance with NYSE price standard
Key Terms
Section 802.01C, continued listing standards, deficiency notice, reverse stock split, +1 more
5 terms
Section 802.01C regulatory
"not in compliance with Section 802.01C of the NYSE Listed Company Manual"
continued listing standards regulatory
"ability to regain compliance with the NYSE’s 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.
deficiency notice regulatory
"The notice is a notice of deficiency, not delisting"
A deficiency notice is a formal letter from a regulator, stock exchange, or securities authority saying that a company’s required filing, disclosure, or compliance item is missing, incomplete, or does not meet rules. It matters to investors because it can delay deals or financial reports, signal higher regulatory or operational risk, and reduce confidence in a company’s transparency—similar to getting a repair notice that must be fixed before normal activity can resume.
reverse stock split financial
"Such alternatives may include a reverse stock split, subject to any required corporate approvals"
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.
forward-looking statements regulatory
"Certain statements included in this press release constitute forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
Why did Lument Finance Trust (LFT) receive an NYSE deficiency notice?
Lument Finance Trust received an NYSE deficiency notice because the average closing price of its common stock was below $1.00 for a consecutive 30 trading-day period, violating the NYSE’s Section 802.01C minimum share price continued listing standard.
Is Lument Finance Trust (LFT) being delisted from the NYSE now?
No. The NYSE notice is a deficiency notice, not a delisting. Lument Finance Trust’s common stock continues to be listed and traded on the NYSE during the cure period, assuming the company meets all other continued listing standards.
How can Lument Finance Trust (LFT) regain NYSE price compliance?
Lument Finance Trust may regain compliance during the six-month cure period if, on the last trading day of any calendar month, its common stock closes at or above $1.00 and has a 30 trading-day average closing price of at least $1.00.
When does Lument Finance Trust’s (LFT) NYSE cure period end?
The NYSE granted Lument Finance Trust a six-month cure period that ends on January 24, 2027. During this time, the company can regain compliance by meeting the NYSE’s minimum $1.00 share price and 30-day average requirements.
What actions is Lument Finance Trust (LFT) considering to regain compliance?
Lument Finance Trust is monitoring its stock price and is considering all available alternatives to restore compliance with NYSE rules. These may include a reverse stock split, subject to any required corporate approvals, though no specific action has been chosen.
Does the NYSE notice affect Lument Finance Trust’s (LFT) operations or strategy?
The NYSE notice relates only to share price and listing standards. Lument Finance Trust continues focusing on commercial real estate debt investments, primarily transitional floating rate commercial mortgage loans, while working to address the NYSE minimum price requirement.