CANO - Why Cano Health Stock Slid by Nearly 3% on Tuesday
2023-09-12 17:46:00 ET
Highly beleaguered healthcare stock Cano Health (NYSE: CANO) was hit with some bad news it probably didn't need on Tuesday, and investors sold out of the company. When the smoke cleared, the shares had lost almost 3% of their value on the day, comparing unfavorably to the 0.6% decline of the S&P 500 index.
Late on Monday, Cano Health disclosed in a regulatory filing that it has received formal notice from the New York Stock Exchange (NYSE) that it is in violation of the exchange's trading rules. These mandate that a listed stock's closing price must not fall below $1 per share over a period of 30 consecutive trading days.
As per the NYSE's regulations, Cano Health now has six months to regain compliance with the 30-day, $1 rule. That period of time might be extended if the company elects to solve its problem through means such as a reverse stock split. Such a move, which reduces a company's share count while simultaneously increasing the per-share price of the stock, is typical for a company risking a delisting in this way.
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Why Cano Health Stock Slid by Nearly 3% on Tuesday