Item 3.01.
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On November 22, 2017, Genesis Healthcare, Inc. (“Genesis”) received written notification from the New York Stock Exchange (the “NYSE”) that it is not in compliance with the continued listing standard set forth in Section 802.01C of the NYSE Listed Company Manual (“Section 802.01C”) because the average closing price of Genesis’ common stock was less than $1.00 per share over a consecutive 30 trading-day period (the “Notice”).
Pursuant to Section 802.01C, Genesis can regain compliance with the minimum share price requirement if, during the six-month cure period following receipt of the Notice, on the last trading-day of any calendar month, Genesis’ common stock has a closing share price and a 30 trading-day average closing share price of at least $1.00. In the event that at the expiration of the six-month cure period, both a $1.00 closing share price on the last trading day of the cure period and a $1.00 average closing share price over the 30 trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures with respect to Genesis’ common stock. Separately, if Genesis determines that, if necessary, it will cure the price condition by taking an action that will require approval of its shareholders, it must so inform the NYSE in the notification due on or before December 7, 2017, must obtain the shareholder approval by no later than its next annual meeting, and must implement the action promptly thereafter. The price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above $1.00 per share for at least the following 30 trading days.
Upon receipt of the Notice, Genesis became subject to the procedures set forth in Sections 801 and 802 of the NYSE Listed Company Manual, and in accordance with Section 802.01C, Genesis will notify the NYSE on or before December 7, 2017 that it intends to cure the continued listing standard deficiency and to return to compliance with Section 802.01C. In addition to previously announced restructuring plans relating to certain master leases and loans, Genesis is considering further options to cure this continued listing standard deficiency and regain compliance with Section 802.01C.
Receipt of the Notice by Genesis is not a violation of the terms of, and does not constitute a default or event of default under, any of Genesis’ debt obligations, and will not impact the Company’s ability to finalize its recently announced restructuring plans. The Notice also has no immediate impact on the listing of Genesis’ common stock, which will continue to be listed and traded on the NYSE during the applicable cure period under the symbol “GEN,” subject to Genesis’ compliance with other continued listing requirements set forth in the NYSE Listed Company Manual but will have an added designation of “.BC” to indicate the status of the common stock as below compliance with the NYSE continued listing standards. The “.BC” indicator will be removed at such time as Genesis is deemed compliant.
As required under the NYSE rules, on November 29, 2017, Genesis issued a press release announcing its receipt of the Notice. A copy of the press release is attached hereto as Exhibit 99.1.