Business Context and Reporting Period
This Form 8-K Current Report was filed by Halcón Resources Corporation (not Battalion Oil Corp) on July 26, 2019, covering events occurring on July 22 and July 23, 2019. The Company is incorporated in Delaware and operates in the oil and gas sector.
Key Financial Metrics
This filing is a current report regarding corporate governance and listing status. It does not provide specific financial data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. Investors should refer to the Company's most recent 10-K or 10-Q filings for financial statements.
Material Changes
- Delisting Proceedings: On July 22, 2019, the New York Stock Exchange (NYSE) notified the Company that it was commencing delisting proceedings due to "abnormally low" trading price levels, pursuant to Section 802.01D of the NYSE Listed Company Manual.
- Trading Suspension: Trading in the Company's common stock and warrants was suspended on the NYSE on July 22, 2019.
- Transfer of Listing: On July 23, 2019, the Company's securities commenced trading on the OTC Pink marketplace under the symbols HKRS (Common Stock) and HKRSW (Warrants).
Outlook, Risks, and Management Commentary
Management highlighted significant risks associated with the transfer to the OTC Pink marketplace:
- Liquidity Risk: The OTC Pink is a significantly more limited market than the NYSE, which may result in a less liquid market for stockholders.
- Price Depreciation: The change in venue could further depress the trading price of the common stock and warrants.
- Market Continuity: The Company provided no assurance that its securities will continue to trade on the OTC Pink, that broker-dealers will provide public quotes, or that trading volume will be sufficient for an efficient market.
- Quote Blocking: There is a risk that quotes for the Company's securities may be blocked by OTC Markets Group in the future.
Key Facts for Investor Verification
- Verify the current trading status and liquidity of HKRS and HKRSW on the OTC Pink marketplace.
- Confirm whether the Company has submitted a plan to regain compliance with NYSE listing standards or if the delisting is final.
- Review the Company's most recent audited financial statements to assess the impact of low stock prices on capital raising capabilities.
- Check for any subsequent filings regarding the status of the delisting appeal or further regulatory actions.