Eastman Kodak Co. has been warned by the New York Stock Exchange that its stock will be delisted if the price remains below $1 per share for the next six months, the ailing photography company said Tuesday.
The exchange put the company on notice after its shares' average closing price was below $1 for 30 consecutive trading days.
Under NYSE rules, the Rochester, N.Y., company has six months to regain compliance with the minimum share price requirement. That means its stock must have a closing price of at least $1 a share on the last trading day of any calendar month during the period and must maintain that average over the previous 30 trading days or on the last day of the six months.
Kodak shares, which traded as high as $5.85 in the past year, closed at 65 cents Tuesday, up a penny, and slid nearly 4 percent in after-hours trading. The stock has not closed above $1 since Dec. 2. Shares have slid precipitously since the fall as Kodak, which has posted losses in six of the last seven years, seeks to avert a cash crunch by selling its digital-imaging patent portfolio. The photography pioneer, which has been reinventing itself as a digital imaging and printing company, warned in November that its survival over the next year hinges on an ability to sell its potentially lucrative patents or raise extra funds by selling debt.