NYSE Withdraws Delisting Determination for Verso
MEMPHIS, TN—December 20, 2013—Verso Paper announced today that the New York Stock Exchange has withdrawn its prior determination announced on June 25, 2013, to delist Verso's common stock due to Verso's average market capitalization being less than $75 million. This action, in turn, makes it unnecessary for Verso to move forward on its request that the NYSE's delisting determination be reviewed by a committee of its board of directors. As a result, Verso's review hearing scheduled for February 6, 2014, has been cancelled.
The NYSE took these favorable actions as a result of its adoption on December 10, 2013, of a uniform continued listing standard encompassing average market capitalization that is applicable to all listed companies, including Verso. Under the new standard, a company is considered "below criteria" by the NYSE if the company's average market capitalization over a consecutive 30 trading-day period is less than $50 million and, at the same time, its total stockholders' equity is less than $50 million.
The NYSE also has notified Verso that it is below criteria as to the new continued listing standard. In accordance with the NYSE's rules, within the next 45 days Verso intends to submit to the NYSE a plan to regain compliance with the continued listing standard. If Verso's compliance plan is accepted, the NYSE will allow Verso a period of up to 18 months, measured from August 21, 2013, the date on which Verso first fell below compliance with the standard, in which to regain compliance. In the meantime, Verso's common stock will continue to be traded on the NYSE, subject to ongoing monitoring by the NYSE and Verso's compliance with all other applicable NYSE requirements.
Finally, as previously disclosed on August 20, 2013, Verso remains below criteria with respect to the NYSE's separate continued listing standard requiring that the average closing price of Verso's common stock be at least $1.00 per share over a consecutive 30 trading-day period. To maintain its NYSE listing under this standard, Verso has until February 14, 2014, subject to extension, in which to bring the closing share price and the average closing share price of its common stock back above $1.00.
Based in Memphis, TN, Verso Paper (NYSE:VRS) is a leading North American producer of coated papers, including coated groundwood and coated freesheet, and specialty paper products. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising.
Source: Verso Paper.