Natuzzi risks delisting from NYSE

United States
Published:  30 April, 2020

On April 7, the Italian premium leather furniture manufacturer received notice from the New York Stock Exchange (NYSE) that it would be delisted if it is not able to comply with the Dollar Price Standard within the applicable cure period.

Natuzzi has received a warning from the NYSE that it is no longer in compliance with one of the NYSE’s continued listing standards for a listed company because the average closing price of the Company’s American Depositary Receipts (ADRs) was less than US$1 over a consecutive 30-day trading period, that is the “Dollar Price Standard”. As of April 6, the average closing price of Natuzzi’s ADRs was US$0.78 per ADR. Natuzzi said the issuance of the notification is not discretionary and is sent automatically when a listed company’s share price falls below the Dollar Price Standard.

If Natuzzi is not able to raise its closing price to US$1 to comply with the Dollar Price Standard at the end of the cure period, the NYSE could commence suspension and delisting procedures. Until then, Natuzzi’s shares are expected to continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards. The leather furniture manufacturer said that a delisting from the NYSE is not expected to affect its business operations, nor to conflict with or cause an event of default under any of the company’s material debt or other agreements.

In response to the COVID-19 outbreak, the NYSE is said to have suspended the application of the Dollar Price Standard and of the Capitalisation Standard until June 30. In light of this, the cure period for Natuzzi to regain compliance with the Dollar Price Standard is to expire on December 16, 2020.