Performant Receives Continued Listing Standard Notice from Nasdaq
December 30 2020 - 4:05PM
Business Wire
Performant Financial Corporation (Nasdaq:PFMT),(“the Company”),
a provider of technology-enabled recovery and related analytics
services, announced today that on December 23, 2020, the Company
received a letter from the Listing Qualifications Department of the
NASDAQ Stock Market (“NASDAQ”) indicating that, based upon the
closing bid price of the Company’s common stock for the 30
consecutive business days beginning on November 6, 2020 and ending
on December 22, 2020, the Company no longer meets the requirement
to maintain a minimum bid price of $1 per share, as required by
Marketplace Rule 5450(a)(1) (the "Rule") for continued listing.
In accordance with applicable NASDAQ procedures, the Company
plans to notify NASDAQ in a timely manner that it intends to pursue
actions to meet the minimum average share price requirement. The
NASDAQ letter indicates that the Company will be provided 180
calendar days, or until June 21, 2021, to regain compliance with
the minimum $1.00 per share bid requirement.
The letter further indicates that the Company may regain
compliance with the Rule if at any time before June 19, 2021,
should the bid price of the Company's common stock close at $1.00
per share or above for a minimum of 10 consecutive business days.
The notice has no immediate impact on the listing of the Company’s
common stock, which will continue to trade on the NASDAQ subject to
the Company’s compliance with the other continued listing
requirements.
In response to receiving the notification, Lisa Im, CEO of
Performant said, “We are committed to driving the growth of our
business and believe that our progress towards continued revenue
growth and sustained positive EBITDA, particularly during a year of
immeasurable uncertainty given the COVID-19 pandemic, demonstrates
that success. We wish to thank our existing shareholders for their
continued support, and we look forward to executing our goals.”
About Performant Financial Corporation
Performant helps government and commercial organizations enhance
revenue and contain costs by preventing, identifying and recovering
waste, improper payments and defaulted assets. Performant is a
leading provider of these services in several industries, including
healthcare, student loans and government. Performant has been
providing recovery audit services for more than nine years to both
commercial and government clients, including serving as a Recovery
Auditor for the Centers for Medicare and Medicaid Services.
Powered by a proprietary analytic platform and workflow
technology, Performant also provides professional services related
to the recovery effort, including reporting capabilities, support
services, customer care and stakeholder training programs meant to
mitigate future instances of improper payments. Founded in 1976,
Performant is headquartered in Livermore, California. To learn more
about Performant Financial, please visit
https://www.performantcorp.com/
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding our outlook for revenues,
net income (loss), and adjusted EBITDA in 2020 and beyond. These
forward-looking statements are based on current expectations,
estimates, assumptions and projections that are subject to change
and actual results may differ materially from the forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the material adverse
impact of the COVID-19 pandemic on our business, results of
operations and financial condition as well as on the business
operations and financial performance of many of our customers, that
the Company may not have sufficient cash flows from operations to
fund ongoing operations and other liquidity needs, that the
Company’s indebtedness could adversely affect its business and
financial condition and could reduce the funds available for other
purposes and the failure to comply with covenants contained in its
credit agreement could result in an event of default that could
adversely affect its results of operations, that the Company faces
a long period to implement a new contract which may result in the
incurring of expenses before the receipt of revenues from new
client relationships, the high level of revenue concentration among
the Company's largest customers and any termination in the
Company’s relationship with any of our significant clients would
result in a material decline in our revenues, that many of the
Company's customer contracts are subject to periodic renewal, are
not exclusive, do not provide for committed business volumes and
may be changed or terminated unilaterally and on short notice, that
the Company may not be able to manage its potential growth
effectively, that the Company faces significant competition in all
of its markets, that continuing limitations on the scope of our
audit activity under our RAC contracts have significantly reduced
our revenue opportunities with this client, that the U.S. federal
government accounts for a significant portion of the Company's
revenues, that future legislative and regulatory changes may have
significant effects on the Company's business, that failure of the
Company's or third parties' operating systems and technology
infrastructure could disrupt the operation of the Company's
business and the threat of breach of the Company's security
measures or failure or unauthorized access to confidential data
that the Company possesses. More information on potential factors
that could affect the Company's financial condition and operating
results is included from time to time in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of the Company's annual report on
Form 10-K for the year ended December 31, 2019 and subsequently
filed reports on Forms 10-Q and 8-K. The forward-looking statements
are made as of the date of this press release and the Company does
not undertake to update any forward-looking statements to conform
these statements to actual results or revised expectations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201230005202/en/
Richard Zubek Investor Relations 925-960-4988
investors@performantcorp.com
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