WMIH Corp. (NASDAQ:WMIH)
Shares of WMIH Corp. (NASDAQ:WMIH) traded higher as the company received a compliance notice from the NASDAQ. Shares of the company gained 3.7% in Friday’s trading session to end the week at $0.711 a share.
WMIH Stock Performance
WMIH Corp. (NASDAQ:WMIH) faces the risk of being delisted from the exchange as its stock price is not in compliance with the minimum bid price requirement. The warning does not come as a surprise given that the stock has traded below the $1 a share mark for more than 30 consecutive days.
The non-compliance warning underscores the stock’s underperformance for the better part of the year. WMIH Corp has shed more than 50% in market value since the start of the year. The stock is currently trading in a downtrend and close to its 52-week low of $0.60.
WMIH Corp. (NASDAQ:WMIH)’s is down 60% for the last 12 months – a performance record that is well below that of its peers. The 30-day price drop of 19.99% further underscores the stock’s underperformance.
WMIH Compliance Plan
Investor confidence in the reinsurance company has hit all-time lows as a lack of news and corporate updates continue to raise concerns about the company’s prospects. The NASDAQ has given the company 180 days to regain compliance with the minimum bid price requirement. To regain compliance the stock will have to trade above the $1 a share for 10 consecutive days.
“The Company intends to continue monitoring the closing bid price of its common stock and will consider a range of available options to regain compliance with the share price listing standard,” WMIH Corp in a statement.
WMIH Corp. (NASDAQ:WMIH) is considering a reverse stock split as a means to regain compliance. The company is also considering identifying and consummating an accretive acquisition that it hopes will strengthen investor confidence – thus pushing the stock’s price up.
Should the company fail to shore up its stock price, it could be delisted from the NASDAQ. Delisting could force the company to pursue listing in the OTC market.
Separately, WMIH Corp. (NASDAQ:WMIH) has redeemed its 13% Senior Second-lien Notes due in 2030 under the Senior Second Lien Notes Indenture. Following the redemption through a combination of runoff proceeds and unrestricted corporate cash, the principal amount of the Second Lien Notes is $18.2 million.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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