PEDEVCO CORP. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by PEDEVCO CORP. on May 9, 2017, covering events occurring on May 3, 2017. The filing addresses the Company's compliance status with the NYSE MKT LLC (the "Exchange") regarding continued listing standards following a one-for-ten reverse stock split effective April 7, 2017.
Key Financial Metrics and Listing Status
- Stock Price Compliance: The Company regained compliance with the minimum stock price standard (Section 1003(f)(v)), requiring a 30-day average closing price of at least $0.20 per share.
- Stockholders' Equity: As of December 31, 2016, the Company reported stockholders' equity of less than $2,000,000, failing to meet the Exchange's minimum standards under Sections 1003(a)(i), (ii), and (iii).
- Profitability: The Company has incurred net losses in its five most recent fiscal years ended December 31, 2016.
- Trading Symbol: A ".BC" indicator remains affixed to the Company's trading symbol to denote non-compliance with equity and profitability standards.
Material Changes and Compliance Plan
While the Company resolved its minimum stock price deficiency, it remains out of compliance with minimum stockholders' equity and profitability requirements. The Company previously submitted a Plan of Compliance on February 13, 2017, which was accepted by the Exchange. This Plan is designed to increase stockholders' equity well above the minimum required standards. No new or revised Plan is currently required, provided the Company continues to make progress consistent with the approved Plan.
Outlook, Risks, and Contingencies
The Company must regain full compliance with Sections 1003(a)(i), (ii), and (iii) of the Company Guide by June 27, 2018. Failure to achieve compliance by this deadline will subject the Company to delisting procedures. The Company may appeal such a determination, but there is no assurance that compliance will be achieved within the required timeframe. The filing includes standard forward-looking statement disclaimers regarding future expectations and risks.
Investor Verification Checklist
- Verify the current status of the ".BC" trading symbol indicator on the NYSE MKT.
- Review the specific milestones and progress reports of the Exchange-approved Plan of Compliance filed in February 2017.
- Confirm the June 27, 2018 deadline for regaining full compliance with equity and profitability standards.
- Monitor future filings for any updates on the Company's ability to increase stockholders' equity above the $2,000,000 threshold.