WeWork is facing the possibility of having its shares delisted from the New York Stock Exchange (NYSE).
The co-working giant received a non-compliance notice from the New York Stock Exchange, Reuters reported, after its stock closed below $1 on average over a 30-day trading period.
The notice doesn’t mean immediate consequences, as the beleaguered company said it should have six months to regain compliance before being delisted from the exchange.
It won’t be easy for WeWork to recover, though. In aftermarket trading following WeWork’s disclosure on Tuesday, company stock dropped another 2 percent to a meager 48 cents. Shares have dropped 65 percent year-to-date and its market capitalization as of late Tuesday was $361 million, a far cry from its $47 billion valuation in 2019.
Short sellers piled onto the co-working firm last year after it failed to turn a profit in its first full year as a publicly traded company. As of Dec. 15, investors held short positions on more than 27 percent of WeWork’s publicly tradable shares.
The company has been burning through cash and looking for solutions. Last month, it closed in on a deal to restructure more than $3 billion in outstanding debt and raise additional cash, perhaps enough to keep the company afloat for several years.
In January, SoftBank — WeWork’s largest investor and creditor — lent the company $250 million; a month later, it increased the size of a debt facility and postponed a repayment deadline. SoftBank has poured $10 billion into WeWork since 2017.