In case of violation of this rule, the exchange gives listed companies a period of adaptation and expects this price level to be achieved within a certain period of time. In this context, blockchain-based service solutions provider SOS Limited received a non-compliance letter from the NYSE due to stock prices falling below expectations.

SOS Limited’s American depositary receipts (ADS) have fallen below $1 over the last 30 trading days. Since the NYSE requires listed securities to maintain this price level, SOS Limited needs to correct this situation.

If the company’s stock price and average share price do not rise above $1 in the next six months, it risks suspension from the NYSE and delisting.

SOS Limited made a statement regarding the adaptation process:

“The company can adjust at any time during the six-month recovery period. Compliance will be deemed to have been achieved if the company’s closing stock price is at least $1 on the last trading day of any calendar month during the recovery period and the average closing stock price during the 30-day trading period ending on the last trading day of that month is at least $1.”

Notification of non-compliance has no immediate impact on the listing of the company’s ADSs. The Company’s ADSs will continue to be listed and traded on the NYSE during the six-month recovery period as long as the NYSE’s other listing requirements are complied with.

If, at the end of the six-month recovery period, both a closing stock price of $1 on the last trading day of the recovery period and an average closing stock price of $1 over the 30-day trading period ending on the last trading day of the recovery period are not achieved, the NYSE will begin suspension and delisting procedures.

The company’s share price fell 4.13% to $0.7 in premarket trading on Nasdaq. As seen on the chart, SOS shares reached $1 on May 22 and have been trading below $1 since then.

In March, the NYSE threatened that crypto custody and trading platform Bakkt would be delisted if it did not raise its average closing share price above $1. Bakkt announced that the NYSE stated that it did not comply with listing rules and that its share price closed below $1 on average over the last 30-day trading period.

This highlights the difficulties cryptocurrency companies and other technology companies may face in complying with exchange rules and how critical compliance with these rules is. Such warnings by the NYSE are an important precaution taken by companies to ensure that they meet stock exchange standards and maintain market order.