Power REIT Receives Notice Resolving NYSE American Listing Standards Deficiency
September 26 2024 - 10:49AM
Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the
“Trust”), today announced that it received a notice from the NYSE
American LLC rescinding its letter dated September 3, 2024 (the
“Deficiency Letter”). As previously disclosed, the Deficiency
Letter stated that the Trust was not in compliance with the
continued listing standards of the Exchange because the Trust was
below compliance with Section 1003(a)(i) of the NYSE American
Company Guide (the “Company Guide”), requiring stockholders’ equity
of $2.0 million or more if it has reported losses from continuing
operations and/or net losses in two of its three most recent fiscal
years.
As part of evaluating a plan to comply with the
NYSE American listing requirements, the Trust embarked on analysis
of the accounting treatment for its Preferred Shares which
historically were classified as Mezzanine Equity. Based on its
review, the Trust determined that the Preferred Shares should be
treated as Equity. The Trust consulted with its Auditors and also
retained a qualified third-party consultant to assist with its
analysis of the accounting treatment for the Preferred Shares.
Ultimately, the Trust concluded that it has incorrectly classified
the Preferred Shares on its balance sheet and that they should be
treated as Equity (not mezzanine equity) and the financial
statements should be restated accordingly. The restatement
increases the Trust’s Total Equity on its consolidated Balance
Sheet to approximately $10 million which is above the threshold
required for NYSE American compliance as of June 30, 2024. The
change in accounting treatment is non-cash in nature, and does not
affect revenue, gross margin, net income or income per share or the
presentation of the Company’s non-GAAP metrics, including Funds
from Operations.
On September 24, 2024, Power REIT filed a Form
10-Q/A with the SEC for the quarter ended June 30, 2024, which
provides a restated equity balance on its Consolidated Balance
Sheet and an Explanatory Note. In addition, on September 24, 2024,
Power REIT filed a Form 8-K describing the filing of the Form
10-Q/A.
On September 25, 2024, the Trust received a
notice from the NYSE American rescinding the Deficiency Letter as
the Trust is compliant with equity requirements based on the
restated equity level on the financial statements in the Form
10-Q/A.
ABOUT POWER REIT
Power REIT, with a focus on the “Triple Bottom
Line” and a commitment to people, planet and profit, is a
specialized real estate investment trust (REIT) that owns
sustainable real estate related to infrastructure assets including
properties for Controlled Environment Agriculture, Renewable Energy
and Transportation.
Additional information about Power REIT can be
found on its website: www.pwreit.com
Cautionary Statement About
Forward-Looking Statements
This document includes forward-looking
statements within the meaning of the U.S. securities laws.
Forward-looking statements are those that predict or describe
future events or trends and that do not relate solely to historical
matters. You can generally identify forward-looking statements as
statements containing the words “believe,” “expect,” “will,”
“anticipate,” “intend,” “estimate,” “project,” “plan,” “assume”,
“seek” or other similar expressions, or negatives of those
expressions, although not all forward-looking statements contain
these identifying words. All statements contained in this document
regarding our future strategy, future operations, future prospects,
the future of our industries and results that might be obtained by
pursuing management’s current or future plans and objectives are
forward-looking statements. You should not place undue reliance on
any forward-looking statements because the matters they describe
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond our control.
Important factors that could cause actual results to differ
materially from current expectations include, among others, the
Company’s ability to continue to remain in compliance with the NYSE
American listing standards requirements and the other factors
discussed in the Company’s filings with the SEC including the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023. Our forward-looking statements are based on the
information currently available to us and speak only as of the date
of the filing of this document. Over time, our actual results,
performance, financial condition or achievements may differ from
the anticipated results, performance, financial condition or
achievements that are expressed or implied by our forward-looking
statements, and such differences may be significant and materially
adverse to our security holders.
CONTACT:
David H. Lesser, Chairman & CEO |
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dlesser@pwreit.com |
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212-750-0371 |
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301 Winding RoadOld Bethpage, NY 11804 |
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www.pwreit.com |
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