EXCO Resources, Inc. Receives Notice of Non-Compliance with NYSE Continued Listing Standards
August 16 2017 - 3:55PM
Business Wire
EXCO Resources, Inc. (NYSE: XCO) (“EXCO” or the
“Company”) today announced that on August 10, 2017 it was
notified by the New York Stock Exchange (the “NYSE”) that it
is not in compliance with the continued listing standards set forth
in Section 802.01B of the NYSE’s Listed Company Manual because the
Company’s average global market capitalization fell below $50
million over a trailing consecutive 30 trading-day period while its
shareholders’ equity was less than $50 million. As required by the
NYSE, the Company plans to notify the NYSE within ten business days
of its intent to cure the deficiency and return to compliance with
the NYSE’s continued listing requirements.
The Company has 45 days from the receipt of the notice of
noncompliance to submit a business plan to the NYSE demonstrating
how it intends to regain compliance with the continued listing
standards set forth in Section 802.01B of the Listed Company
Manual. The Company intends to develop and submit such a business
plan within the required time frame and will continue to work with
the NYSE to attempt to comply with all continued listing standards.
Assuming that the NYSE accepts the plan, the Company will be
subject to quarterly monitoring for compliance with the business
plan and the Company’s common shares will continue to trade on the
NYSE, subject to the Company’s compliance with other NYSE continued
listing requirements.
The notice has no immediate impact on the listing of the
Company’s common shares, which will continue to be listed and
traded on the NYSE during this period, subject to the Company’s
compliance with the other listing requirements of the NYSE. The
Company’s common shares will continue to trade under the symbol
“XCO,” but will have an added designation of “.BC” to indicate the
status of the common shares as “below compliance.”
If the Company’s common shares ultimately were to be delisted
for any reason, it could negatively impact the Company by (i)
reducing the liquidity and market price of the Company’s common
shares; (ii) reducing the number of investors willing to hold or
acquire the common shares, which could negatively impact the
Company’s ability to raise equity financing; (iii) limiting the
Company’s ability to use a resale registration statement on Form
S-3 to offer and sell freely tradable securities, thereby
preventing the Company from accessing the public capital markets;
and (iv) impairing the Company’s ability to provide equity
incentives to its employees.
The NYSE notification does not affect EXCO’s business operations
or its Securities and Exchange Commission (“SEC”) reporting
requirements and does not conflict with or cause an event of
default under any of the Company’s material debt agreements.
About EXCO
EXCO Resources, Inc. is an oil and natural gas exploration,
exploitation, acquisition, development and production company
headquartered in Dallas, Texas with principal operations in Texas,
North Louisiana and the Appalachia region. EXCO’s headquarters are
located at 12377 Merit Drive, Suite 1700, Dallas, TX 75251.
Forward-Looking Statements
This release may contain forward-looking statements relating to
future financial results, business expectations and strategic and
financial alternatives and other business transactions. Actual
results may differ materially from those predicted as a result of
factors over which EXCO has no control. Such factors include, but
are not limited to: EXCO’s liquidity, sources of capital resources
and ability to implement or execute on any strategic or financial
initiatives, adjust its capital structure, or increase its
liquidity; the continued volatility of, or depressed prices in, the
oil and gas markets; the continued listing of EXCO’s common shares
on the NYSE; the estimates of reserves; availability and costs of
services and materials; commodity price changes; regulatory
changes; and general economic conditions. These and other factors
are included in EXCO’s reports on file with the SEC. Except as
required by applicable law, EXCO undertakes no obligation to
publicly update or revise any forward-looking statements.
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EXCO Resources, Inc.Tyler Farquharson, 214-368-2084Vice
President, Chief Financial Officer and
Treasurerwww.excoresources.com