HOUSTON, April 1, 2020 /PRNewswire/ -- ION Geophysical
Corporation (NYSE: IO) today announced that written notice was
received from the New York Stock Exchange (the "NYSE") that the
Company is not in compliance with the continued listing standards
set forth in Section 802.01B of the
NYSE Listed Company Manual. ION is considered below criteria
established by the NYSE for continued listing because its average
market capitalization has been less than $50
million over a consecutive 30 trading-day period, and at the
same time its last reported stockholders' equity was below
$50 million. The Company's
market capitalization was above $50
million prior to the precipitous stock market decline that
was triggered by the COVID-19 pandemic.
The Company intends to submit a plan that demonstrates its
ability to bring the Company into conformity with the continued
listing standards within 18 months. During the 18-month
period, the Company's shares will continue to be listed and traded
on the NYSE, subject to its continued compliance with the plan and
other NYSE continued listing standards.
"As our first quarter performance will validate, our team was
making good process executing the refined strategies and cost
restructuring we rolled out in January," said Chris Usher, ION's President and Chief Executive
Officer. "While we captured some early successes, our
industry is now facing the double impact of demand-side and
supply-side effects from the COVID-19 pandemic and geopolitical
decisions respectively. Our immediate actions were to address
the COVID-19 threat and rapidly adjust working practices to protect
our employees and communities. We have now also assessed the
related impact of E&P budget reductions to our business and
believe our forward momentum will be temporarily paused
near-term.
"We are acting quickly to protect cash, continue servicing
customers, apply new approaches with digital engagement and
reallocate resources to maximize near-term financial impact.
We are developing our plan and will work cooperatively with the
NYSE in an effort to restore compliance. It is important to
note that the COVID-19 pandemic was the major driver in the erosion
of our market cap. While we are certainly not relying on the
amelioration of the pandemic to fix the problem, we do believe that
the normalization of markets should cause our market cap to
rebound."
About ION
ION develops and leverages innovative technologies, creating
value through data capture, analysis and optimization to enhance
critical decision-making, enabling superior returns. For more
information, visit iongeo.com.
Contacts
ION (Investor relations)
Executive Vice President and Chief Financial Officer
Mike Morrison, +1 281.552.3011
mike.morrison@iongeo.com
ION (Media relations)
Vice President, Communications
Rachel White, +1 281.781.1168
rachel.white@iongeo.com
The information herein contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements may include information and other
statements that are not of historical fact. Actual results may vary
materially from those described in these forward-looking
statements. All forward-looking statements reflect numerous
assumptions and involve a number of risks and uncertainties. These
risks and uncertainties include the risks associated with the
timing and development of ION Geophysical Corporation's products
and services; pricing pressure; decreased demand; changes in oil
prices; and political, execution, regulatory, and currency risks.
These risks and uncertainties also include risks associated with
the WesternGeco litigation and other related proceedings. We cannot
predict the outcome of this litigation or the related proceedings.
It is also possible that the New York Stock Exchange will not
accept the plan that the Company submits, which would make the
Company subject to suspension and delisting procedures. The Company
can provide no assurances that it will be able to satisfy the
NYSE's requirements to maintain a listing of its shares. For
additional information regarding these various risks and
uncertainties, including the WesternGeco litigation, see our Form
10-K for the year ended December 31,
2019, filed on February 6,
2020. Additional risk factors, which could affect actual
results, are disclosed by the Company in its filings with the
Securities and Exchange Commission ("SEC"), including its Form
10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company
expressly disclaims any obligation to revise or update any
forward-looking statements.
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SOURCE ION Geophysical Corporation