Civeo Receives Continued Listing Standard Notice from NYSE
March 31 2020 - 7:30AM
Business Wire
Civeo Corporation (NYSE: CVEO) today announced that on March 27,
2020, Civeo was notified by the New York Stock Exchange of its
noncompliance with continued listing standards because the average
closing price of its common shares over a consecutive 30-day
trading period had fallen below $1.00 per share, which is the
minimum average closing price per share required to maintain
listing on the NYSE.
In response to the letter, Bradley J. Dodson, Civeo’s President
and Chief Executive Officer, stated, “The spread of COVID-19 has
taken its toll on the global economy in recent weeks and, coupled
with the oil price war between Saudi Arabia and Russia, has
resulted in a collapse of oil prices. The confluence of events has
created unprecedented downward pressure on energy industry stocks,
particularly for small-cap companies with operations in the U.S.
and Canada such as Civeo. Our shares have traded below $1.00 per
share for a period of time long enough for the NYSE to issue a
non-compliance notice. In response, the Company’s Board of
Directors is reviewing available alternatives to return to
compliance with the NYSE continued listing standards. At the
Company’s annual meeting of shareholders currently scheduled for
May 2020, the Company’s Board of Directors intends to seek approval
from shareholders that would allow Civeo to effect a reverse share
split, if needed, to cure the listing standard deficiency.”
As required by the NYSE, the Company has notified the NYSE of
its intent to cure the deficiency and restore its compliance with
the NYSE continued listing standards. In general, a listed company
has a period of six months following the receipt of the notice to
regain compliance. In order to regain compliance, on the last
trading day in any calendar month during the cure period, the
Company’s common shares must have (i) a closing price of at least
$1.00 per share and (ii) an average closing price of at least $1.00
per share over the 30 trading day period ending on the last trading
day of such month. If shareholder approval is required, the price
condition will be deemed cured if the price promptly exceeds $1.00
per share, and the price remains above the level for at least the
following 30 trading days. During this period, subject to Civeo’s
compliance with other NYSE continued listing requirements, Civeo’s
common shares will continue to be traded on the NYSE under the
symbol “CVEO” but will have an added designation of “.BC” to
indicate the status of the common shares as below compliance. If
Civeo is unable to regain compliance, the NYSE will initiate
procedures to suspend and delist Civeo’s common shares.
The NYSE notification does not affect Civeo’s business
operations or its Securities and Exchange Commission reporting
requirements and does not result in a default under any of the
Company’s material debt agreements.
About Civeo
Civeo Corporation is a leading provider of hospitality services
with prominent market positions in the Canadian oil sands and the
Australian natural resource regions. Civeo offers comprehensive
solutions for lodging hundreds or thousands of workers with its
long-term and temporary accommodations and provides food services,
housekeeping, facility management, laundry, water and wastewater
treatment, power generation, communications systems, security and
logistics services. Civeo currently operates a total of 28 lodges
and villages in Canada, Australia and the U.S., with an aggregate
of approximately 30,000 rooms. Civeo is publicly traded under the
symbol CVEO on the New York Stock Exchange. For more information,
please visit Civeo's website at www.civeo.com.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are
those that do not state historical facts and are, therefore,
inherently subject to risks and uncertainties. The forward-looking
statements in this news release include the statements regarding
Civeo’s future plans, including with respect to restoring
compliance with NYSE continue listing standards. The
forward-looking statements included herein are based on then
current expectations and entail various risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. Such
risks and uncertainties include, among other things, risks
associated with the general nature of the accommodations industry,
risks associated with the level of supply and demand for oil, coal,
iron ore and other minerals, including the level of activity and
developments in the Canadian oil sands, the level of demand for
coal and other natural resources from Australia, and fluctuations
or sharp declines in the current and future prices of oil, coal,
iron ore and other minerals, risks associated with currency
exchange rates, risks associated with the Company's ability to
integrate acquisitions, risks associated with the development of
new projects, including whether such projects will continue in the
future, risks associated with the trading price of the Company’s
common shares, availability and cost of capital, risks associated
with general global economic conditions, global weather conditions,
natural disasters and security threats and changes to government
and environmental regulations, including climate change, risks
associated with global health concerns and pandemics, including the
risk that room occupancy may decline if our customers are limited
or restricted in the availability of personnel who may become ill
or be subjected to quarantine, and other factors discussed in the
"Management’s Discussion and Analysis of Financial Condition and
Results of Operations" and "Risk Factors" sections of Civeo’s
annual report on Form 10-K for the year ended December 31, 2019 and
other reports the Company may file from time to time with the U.S.
Securities and Exchange Commission. Each forward-looking statement
contained in this news release speaks only as of the date of this
release. Except as required by law, Civeo expressly disclaims any
intention or obligation to revise or update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200331005199/en/
Regan Nielsen Civeo Corporation Director, Corporate Development
& Investor Relations 713-510-2400
Jeffrey Spittel FTI Consulting 832-667-5140
Civeo (NYSE:CVEO)
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