USEC RECEIVES LISTING WARNING FROM NEW YORK STOCK EXCHANGE

By ExchangeMonitor

In a step that could eventually lead to USEC being dropped from the New York Stock Exchange, the company reported yesterday that it had received notice that its stock price had fallen below the exchange’s minimum share price rule. USEC received the continued listings standards notice because the average closing of its stock was below $1 for a consecutive 30-day trading period. While the company has six months to raise its average closing share price above a dollar before being de-listed, the company warned earlier this month that if it were not listed on a national stock exchange it would likely be forced to file for bankruptcy protection. “The Company is evaluating its options to cure the price deficiency, including a reverse stock split, which would require shareholder approval at or prior to the Company’s next annual meeting of shareholders,” USEC said in a statement yesterday.

USEC President and CEO John Welch called the drop in share price “the big elephant in the room” during a May 2 call with investors, and vowed to avoid that situation. “First, let me assure you that we will work with the New York Stock Exchange to address our common stock price in the event we stay below the minimum share price requirement and become non-compliant with NYSE listing standards,” he said. “There is a process in place at the exchange that provides six months for company to take actions that can increase the price above the $1 threshold. For example, we are working hard to put in place an agreement to extend Paducah enrichment operations by one year and at the same time we are working hard to get government funding for the RD&D program. Success in these areas could improve our share price. If needed, we could also take corporate actions such as the reverse stock split with the approval of shareholders.”

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