WeWork is fighting to stay traded on the New York Stock Exchange – Commercial Observer

We work is on thin ice with the New York Stock Exchange (NYSE) after its stock price fell below $1 per share for more than a month.

The coworking company that has struggled to stay afloat in recent years announced Wednesday morning that it received a notice of non-compliance from the NYSE that it can be deleted. WeWork leaders said the company will work to avoid that outcome and will officially respond to the NYSE within 10 days with a plan to avoid becoming a penny stock.

WeWorks shares first dipped below $1 in early March, jumped back up shortly after, then began a long decline on March 22 to the current price of 48 cents per share.

In a press release, WeWork said it has a six-month recovery period to avoid being delisted and can remain on the NYSE if it has a closing price of at least $1 on the final day and an average share price of at least $1 over the course of the day. the period of 30 trading days.

WeWork did not immediately respond to a request for further comment.

The coworking giant had a bumpy road to becoming a public company that began in 2019 with a disastrous IPO process that eventually led to founder Adam Neumann leave because WeWork almost went bankrupt. It dropped those plans, but eventually made it to the NYSE in October 2021 through a special purpose merger with BowX Acquisition Corporation.

Things have not been smooth sailing since the IPO.

WeWork got off to a rocky start to 2023 with plans to lay off 300 employees, close 40 locations, and shrink office space in Dock 72 at Brooklyn Navy Yards. The job losses would mainly fall among US workers, Commercial Observer reported this in January.

In early March, WeWork had begun fundraising and negotiations to restructure its $3 billion debt Softbank. The infusion of funds, with Yardi as a potential contributor, has the potential to provide sufficient funds to cover operating costs for at least a few years, the New York Times reported at the time.

Mark Hallum can be reached at [email protected].