Digital Media Solutions, Inc. (NYSE: DMS) announced its delisting from the New York Stock Exchange (NYSE) on Monday. The delisting follows the NYSE's determination that DMS did not meet the continued listing standard, which requires listed companies to maintain an average global market capitalization of at least $15 million over 30 consecutive trading days.
The delisting will not affect the company's day-to-day business operations or its relationships with partners and employees. The company stated that it would continue as a public company and that its Class A common stock is expected to start trading on the over-the-counter markets from Tuesday, September 26, 2023.
Despite the NYSE's decision, DMS remains focused on its core solutions in service of its advertising clients. Furthermore, the delisting does not trigger a default event under the senior secured credit facility to which its subsidiaries are part. The firm continues to be supported by its lenders, as demonstrated by the recent amendment to its credit facility. This amendment has provided the necessary flexibility for the company and management to navigate through the current environment.
DMS will continue to report to the Securities and Exchange Commission (SEC). The company also indicated it might consider relisting its Class A common stock on a national securities exchange in the future if the Board of Directors determines it would be in the best interest of the company and its stakeholders.
The company's forward-looking statements detailed multiple potential risks and uncertainties that could cause actual results to differ significantly from expected results. These include potential effects of delisting from the NYSE on relationships with third parties and employees, whether an over-the-counter trading market for Class A common stock will develop or persist, and their ability to meet any requirements for listing securities on a stock exchange in the future.
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