Gastar Exploration receives non-compliance letter from NYSE
Gastar Exploration announced that it received a deficiency letter from the NYSE American stock exchange informing the company of its non-compliance with continued listing standards because the company's common stock has been selling for a low price per share for a substantial period of time. The NYSE American staff determined that the company's continued listing on the exchange is predicated on it effecting a reverse stock split of its common stock or otherwise demonstrating sustained price improvement within a reasonable period of time, which the staff determined to be no later than February 28, 2019. As previously reported, the company is working closely with its financial and legal advisors to consider potential strategic transactions including financing, refinancing, sale or merger transactions, and is encouraging proposals from existing stakeholders and interested third-parties. The company will accordingly consider measures that are in the best interests of the company and its stockholders, but no decision has been made at this time with respect to specific measures regarding the continued listing of the company's stock on the NYSE American. The company has also been informally notified by the NYSE American staff that if the trading price of the company's common stock trades at or below 6c per share, then the company's common and preferred stock will be automatically suspended from further trading on the NYSE American. If the company's preferred and common stock are suspended from the NYSE American, the company expects that the securities would be quoted on the OTCQB over-the-counter market under different symbols on the following trading day. Such a suspension of trading would also accelerate the delisting process with respect to the company's securities. A delisting of the company's common stock would constitute a "fundamental change" under the terms of the indenture governing the company's convertible notes due 2022, which would permit the noteholders to require the company to repurchase all or part of such holder's notes on a date specified by the company that is not less than 20 nor more than 35 calendar days after the date a fundamental change repurchase notice is sent at a repurchase price, payable in cash, equal to 101% of the principal amount of the convertible notes being repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.