FORT WORTH, Texas, Aug. 22, 2016 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today
announced the receipt on August 19,
2016 of formal notice of non-compliance (the "NYSE Notice")
with the New York Stock Exchange (the "NYSE") market capitalization
and share price continued listing standards. Section 802.01B of the
NYSE Listed Company Manual (the "Manual") prohibits the Company's
average global market capitalization over a consecutive thirty
trading-day period from being less than $50,000,000 at the same time its stockholders'
equity is less than $50,000,000.
Section 802.01C of the Manual requires the average closing price of
the Company's common shares to be at least $1.00 per share over a consecutive thirty
trading-day period. As noted in the NYSE Notice, as of August 18, 2016, the average closing price of
Basic's common shares over the preceding 30 trading-day period was
$0.98 per share, the average global
market capitalization over the preceding thirty trading-day period
was approximately $41.7 million and
the last reported stockholders' deficit was approximately
($62.4) million as of June 30, 2016.
Basic has ten business days from receipt of the NYSE Notice to
send a letter to the NYSE confirming receipt of the NYSE Notice and
its intent to cure the deficiencies. Upon submission of such a
letter, Basic would then submit a business plan within 45 days that
demonstrates compliance with the market capitalization and
stockholders' equity listing standard within eighteen months
following the NYSE Notice. Upon receipt of such plan, the NYSE
would have 45 calendar days to review and determine whether Basic
has made reasonable demonstration of its ability to come into
conformity with the relevant standards within the eighteen-month
period. The NYSE will either accept the plan, at which time Basic
would be subject to ongoing quarterly monitoring for compliance
with the plan, or the NYSE will not accept the plan and Basic would
be subject to suspension and delisting proceedings.
Basic has a period of six months from the date of the NYSE
Notice to regain compliance with the minimum share price criteria
by bringing its share price and thirty trading-day average share
price above $1.00. Basic can regain
compliance at any time during the six-month cure period if Basic's
common shares have a closing price of at least $1.00 per common share on the last trading day of
any calendar month during the cure period and an average closing
price of at least $1.00 per common
share over the thirty-trading day period ending on the last trading
day of that month.
Under the NYSE rules, Basic's common shares will continue to be
listed and traded on the NYSE during the cure periods outlined
above, subject to Basic's compliance with other continued listing
requirements. The current noncompliance with the NYSE listing
standards does not affect Basic's ongoing business operations or
its U.S. Securities and Exchange Commission reporting requirements,
nor does it trigger any violation of its material debt or other
obligations. Basic is considering all available options to regain
compliance with the NYSE's continued listing standards. Basic can
provide no assurances that it will be able to satisfy any of the
steps outlined above and maintain the listing of its shares on the
NYSE.
About Basic Energy Services
Basic Energy Services
provides well site services essential to maintaining production
from the oil and gas wells within its operating area. The
Company employs more than 3,400 employees in more than 100 service
points throughout the major oil and gas producing regions in
Texas, Louisiana, Oklahoma, New
Mexico, Arkansas,
Kansas, and the Rocky Mountain and
Appalachian regions. Additional information on Basic Energy
Services is available on the Company's website at
www.basicenergyservices.com.
Safe Harbor Statement
This release includes forward-looking statements and
projections, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Basic has
made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are
current, reasonable, and complete. However, a variety of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this release, including (i) changes in demand for our services and
any related material impact on our pricing and utilizations rates,
(ii) Basic's ability to execute, manage and integrate acquisitions
successfully, (iii) changes in our expenses, including labor or
fuel costs and financing costs, (iv) continued volatility of oil or
natural gas prices, and any related changes in expenditures by our
customers, (v) competition within our industry, (vi) Basic's
ability to comply with its financial and other covenants and
metrics in its debt agreements, as well as any cross-default
provisions, and (vii) Basic's ability to successfully obtain
approval from the NYSE on a plan that demonstrates Basic's ability
to regain compliance with applicable NYSE continued listing
standards. Additional important risk factors that could cause
actual results to differ materially from expectations are disclosed
in Item 1A of Basic's Form 10-K for the year ended December 31, 2015 and subsequent Form 10-Qs filed
with the SEC. While Basic makes these statements and
projections in good faith, neither Basic nor its management can
guarantee that anticipated future results will be achieved.
Basic assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made by Basic, whether as a result of new information,
future events, or otherwise.
Contacts:
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Alan Krenek, Chief
Financial Officer
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Basic Energy
Services, Inc.
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817-334-4100
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Jack
Lascar
|
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Dennard-Lascar
Associates
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713-529-6600
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SOURCE Basic Energy Services, Inc.