NYSE price warning gives Surf Air Mobility (NYSE: SRFM) six months to recover
Rhea-AI Filing Summary
Surf Air Mobility Inc. held its 2026 annual stockholders’ meeting, where shareholders elected Class C directors Tyler Painter and Sudhin Shahani, ratified PricewaterhouseCoopers LLP as independent auditor for the year ending December 31, 2026, and approved an amendment authorizing a reverse stock split of common stock at a ratio between 2:1 and 6:1.
As of the May 26, 2026 record date, there were 100,411,448 shares of common stock outstanding. On July 24, 2026, the company received a notice from the NYSE that its average closing share price had been below $1.00 for 30 consecutive trading days, leaving it out of compliance with NYSE Section 802.01C. The shares remain listed, and Surf Air Mobility has a six‑month cure period to restore compliance by achieving a closing price and 30‑day average of at least $1.00, while indicating it intends to regain compliance organically and may, if necessary, use its newly approved reverse split authority.
Positive
- None.
Negative
- The company is non‑compliant with NYSE Section 802.01C after its 30‑day average share price fell below $1.00, starting a six‑month cure period to restore listing compliance.
8-K Event Classification
3 items: 3.01, 5.07, 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 5.07
Submission of Matters to a Vote of Security Holders
Governance
Results of a shareholder vote on proposals at an annual or special meeting.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Shares outstanding: 100,411,448 shares
Reverse split range: 2:1 to 6:1
Reverse split approval votes for: 54,887,798
+4 more
7 metrics
Shares outstanding
100,411,448 shares
Common stock issued and outstanding as of May 26, 2026 record date
Reverse split range
2:1 to 6:1
Stockholder‑approved ratio range for potential reverse stock split of common stock
Reverse split approval votes for
54,887,798
Votes in favor of amendment authorizing reverse stock split
Reverse split approval votes against
9,453,392
Votes against amendment authorizing reverse stock split
Auditor ratification votes for
59,170,909
Votes to ratify PricewaterhouseCoopers LLP as independent auditor for 2026
NYSE minimum share price
$1.00
Required closing and 30‑day average share price to regain compliance with Section 802.01C
Cure period length
six months
Time after July 24, 2026 NYSE notice to regain listing compliance
Key Terms
reverse stock split, Section 802.01C, average closing price, cure period, +1 more
5 terms
reverse stock split financial
"approve an amendment ... to effect a reverse stock split of the Company’s common stock"
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.
Section 802.01C regulatory
"not in compliance with Section 802.01C of the NYSE Listed Company Manual"
average closing price financial
"because the average closing price of the Company’s common stock was less than $1.00"
The average closing price is the arithmetic mean of a security’s end-of-day prices over a chosen period, found by adding each day’s closing price and dividing by the number of days. It smooths out daily ups and downs to show a typical market value—like averaging daily temperatures to understand a month’s climate—and helps investors spot trends, judge whether a stock is generally rising or falling, and make clearer buy or sell decisions.
cure period regulatory
"can regain compliance at any time within the six-month period following receipt of the Notice"
A cure period is a set amount of time given to a borrower, counterparty, or contracting party to fix a missed payment, breach, or other problem before more serious consequences—like penalties, higher interest, or contract termination—kick in. For investors, it matters because it creates a short grace window that can prevent immediate losses and influence the timing and likelihood of recovery; think of it like a few extra days to pay a bill before a service is cut off.
independent registered public accounting firm financial
"ratify the appointment of PwC as the Company’s independent registered public accounting firm"
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
Why did Surf Air Mobility (SRFM) receive a NYSE continued listing notice?
Surf Air Mobility received an NYSE notice because the average closing price of its common stock was less than $1.00 over a consecutive 30 trading‑day period, putting the company out of compliance with NYSE Section 802.01C minimum price requirements.
How long does Surf Air Mobility (SRFM) have to regain NYSE price compliance?
The company has a six‑month cure period after receiving the NYSE notice. It must achieve a $1.00 or higher closing share price and a 30‑day average of at least $1.00 on the last trading day of any calendar month in that period.
What reverse stock split flexibility did Surf Air Mobility (SRFM) obtain?
Shareholders approved an amendment allowing a reverse stock split of common stock at a ratio from 2:1 to 6:1. This authorization provides flexibility to adjust the share count and price but does not obligate the company to implement a split.
Does the NYSE notice immediately affect trading in Surf Air Mobility (SRFM) stock?
The NYSE notice has no immediate impact on trading. Surf Air Mobility’s common stock will continue to be listed and trade on the NYSE while the company works to regain compliance and continues meeting other listing standards.