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Cash offer and renovation platform Offerpad Solutions Inc. has been put on notice by the New York Stock Exchange that it could be delisted from the exchange because its market capitalization has dropped below $50 million.
Offerpad informed investors on April 16 that it plans to submit a business plan within the next 45 days detailing how it will get back into compliance with the stock exchange’s listing standards within 18 months.
The April 10 compliance notification that Offerpad received from the New York Stock Exchange “has no immediate impact on the listing of the company’s Class A common stock,” the company said.
A spokesperson for Offerpad told Inman the notification is “a standard procedural matter” and that the company is confident in its ability to submit a compliance plan within the required timeframe.
“As we mentioned on our most recent earnings call, we have multiple pathways to success, and are actively executing on initiatives that support sustainable long-term growth,” Offerpad Chief of Staff and Vice President of Operations Cortney Read said in an email.
Over the past 12 months, shares in Offerpad have traded for as little as $1.36 and as much as $8.37. Friday’s closing price of $1.48 valued the company at $40.5 million.
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The compliance notification was triggered because Offerpad’s average global market capitalization fell below $50 million for 30 consecutive trading days.
With 27.38 million shares outstanding, Offerpad’s price per share would need to rebound to at least $1.83 for the company’s market capitalization to meet the $50 million threshold.
Assuming the New York Stock Exchange accepts its plan to regain compliance, Offerpad’s common stock will continue to be listed and traded on the exchange during the 18-month cure period.
Offerpad reported a $62.2 million 2024 net loss on Feb. 24 — a 47 percent improvement from the company’s $117 million in 2023 — and will release Q1 2025 earnings on May 5.
Rival iBuyer Opendoor is flirting with listing compliance issues on the Nasdaq exchange if its price per share remains below the exchange’s $1 minimum bid requirement.
Shares in Opendoor briefly dipped below $1 on April 1 and touched a 52-week low of $0.85 three days later, but bounced back to close at $1.09 on April 9. Shares in Opendoor were at $0.95 Friday, up 3 percent.
Shares in Fathom Realty’s parent company, Fathom Holdings, have also been trading below the $1 threshold since March 3, triggering a compliance warning from Nasdaq.
Fathom notified investors Friday that Nasdaq put it on notice on April 14 that it has until Oct. 13 to regain compliance with its bid price rule.
If shares in Fathom close at $1 or higher for at least 10 consecutive business days, it will be considered back in compliance. If shares in Fathom remain below $1, it could qualify for another 180-day reprieve and regain compliance through a reverse stock split, if necessary.
Fathom reported a $21.6 million 2024 net loss but finished the year with 14,300 agents — 2,505 more than it started with.
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