Desktop Metal is another company receiving a warning from the New York Stock Exchange

Desktop Metal received a notice from the New York Stock Exchange (NYSE) indicating that the company is not in compliance with standards for continued listing on the exchange. The reason for the notice is that the company’s average closing share price has been less than $1.00 over the trailing 30 trading days and Desktop Metal’s share price is currently trading at $0.65 as of November 29, 2023 .

The notification does not result in the immediate withdrawal of Desktop Metal’s shares from the stock exchange, but it means that the company has six months (from November 22 this year) to improve its price. The company notified the NYSE of its intention to correct low share prices and restore compliance with its standards, but also intends to consider “available alternatives,” which include, among others, so-called reverse stock split.

This mechanism consists in the fact that the price of shares on the stock exchange is increased by a set factor, but their total number is reduced by the same factor. In this way, the share price is increased without changing the share capital and the value of the shares remains unchanged. Under NYSE rules, Desktop Metal must correct its low share price to above $1.00 per share and remain above that level for at least the next 30 trading days.

Desktop Metal is another company from the 3D printing industry that has received this type of notification from American stock exchanges. Previously, the Dutch-American Shapeways and more recently Markforged found themselves in a similar situation.

Source: www.desktopmetal.com