Nautilus, Inc. (NYSE: NLS), a global leader in digitally connected home fitness solutions, announced on Wednesday that it has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with the exchange's continued listing standard. The notice was issued due to the average closing price of Nautilus' common stock falling below $1.00 per share over a consecutive 30 trading-day period.
According to InvestingPro data, the company's shares closed unchanged at 70 cents per share on Wednesday, remaining within the 52-week range of 67 cents and $2.17. This aligns with the InvestingPro tip that the company's stock is trading near its 52-week low. The company has a market cap of $24.9M and a negative P/E ratio of -0.44, demonstrating its current financial struggles.
The NYSE notice, received by Nautilus on September 21, does not result in the immediate delisting of the company’s common stock. Instead, it initiates a six-month period during which Nautilus can regain compliance with the minimum share price requirement. The company can achieve this if its closing share price and average closing share price over a 30 trading-day period is at least $1.00 on the last trading day of any calendar month during this cure period.
Nautilus has expressed its intent to respond to the NYSE within ten business days of receipt of the notice, outlining its plans to rectify the deficiency. If Nautilus opts for a cure strategy requiring shareholder approval at its next annual meeting, the NYSE will consider the price condition cured if the price promptly exceeds $1.00 per share and remains above this level for at least 30 trading days following.
During this period, Nautilus' common stock will continue to be listed and traded on the NYSE, subject to compliance with other continued listing standards set by the exchange. The receipt of the notice does not impact Nautilus' business operations or its reporting requirements with the Securities and Exchange Commission.
An InvestingPro tip suggests that Nautilus' stock price movements are quite volatile, which may be a factor for investors to consider. The company's revenue growth has been negative, with a decrease of 40.47% in the last twelve months, according to InvestingPro data.
Nautilus, headquartered in Vancouver, Washington, offers a broad selection of exercise bikes, cardio equipment, and strength training products under its brand family which includes BowFlex®, Nautilus®, Schwinn®, and JRNY®, its digital fitness platform. The company's products are sold direct to consumers on brand websites, through retail partners, and are available throughout the U.S. and internationally. However, InvestingPro tips indicate that the company has not been profitable over the last twelve months, which may be a consideration for potential investors. For more insights, check out the additional 13 tips available on the InvestingPro platform.
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