The fear of getting delisted from a senior exchange is never good for investor sentiment. Some of the main reasons for failing to remain compliant with listing requirements, regardless if it's the NASDAQ or NYSE, are coming in below the minimum price per share, market capitalization or stockholders' equity, to name a few.
In the case of a share price shortcoming, investors usually start figuring that a reverse split is looming, a desperate move that shareholders generally don't care for. But...if a company can formulate a plan and get the exchange on board with it, investors can react positively, as is the case with Camber Energy (NYSE MKT:CEI) in Wednesday trading.
Camber was deficient in a number of cases, including share price and stockholders' equity, rules which are spelled out under the NYSE American's listing requirement Sections 1003.
The San Antonio-based independent oil and gas company said it submitted a plan to the exchange promptly after receiving the non-compliance notice last month and was just awaiting a reply. The exchange indeed has replied favorably, saying it is good with the undisclosed plan and granting Camber until August 3, 2018 in order to correct its listing issues.
Across four paragraphs in a press release today, Camber never actually said what its plan is, although interim chief executive officer Richard Azar in October spoke at length in a letter from the CEO about how he intends to try and right the ship.
Camber made strides in the right direction by returning to compliance with Sections 134 (not filing quarterly reports in a timely manner) and 1101 (a general clause about the condition of a company), by making its regulatory filings on Monday.
Shareholders are cheering the long extension, which is underscored by building corporate value through executing a better model under the leadership of Azar, sending shares spiking to as high as 40 cents in morning trading from Tuesday's close at 17 cents.
Early in the afternoon session, shares of CEI are holding at 25 cents, representing a gain of 52.2%.
