Business Context and Reporting Period
This Form 8-K was filed by Halcón Resources Corporation (not Battalion Oil Corp) on August 12, 2016. The report addresses a regulatory notice received from the New York Stock Exchange (NYSE) regarding the company's compliance with continued listing standards.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or debt figures. However, it discloses the following metrics triggering the regulatory notice:
- Market Capitalization: Average value was less than $50 million over a 30 trading-day period.
- Stockholders' Equity: Average value was less than $50 million over a 30 trading-day period.
Material Changes
The material change reported is the failure to meet the NYSE minimum listing requirements under Section 802.01B of the NYSE Listed Company Manual. This deficiency is based on the average market capitalization and stockholders' equity falling below the $50 million threshold over the preceding 30 trading days.
Guidance, Outlook, and Management Commentary
- Compliance Plan: The company has 45 days from receipt of the notice to submit a plan to regain compliance.
- Restructuring: Management expects to notify the NYSE that it intends to cure the deficiency upon the consummation of its current restructuring plan.
- Listing Status: If the plan is approved, shares will continue to be listed and traded on the NYSE under the symbol "HK" during an 18-month cure period, subject to other listing standards.
- Immediate Impact: The notice has no immediate impact on the trading of the company's common stock.
Investor Verification Checklist
- Verify the details and timeline of the company's "current restructuring plan" intended to cure the deficiency.
- Monitor the submission of the compliance plan to the NYSE within the 45-day window.
- Confirm the NYSE's approval of the cure plan to ensure continued listing status.
- Review subsequent filings for updates on market capitalization and stockholders' equity trends.