Natuzzi receives continued listing standard notice from NYSE

Natuzzi announced that on April 7, 2020 it received notice from the New York Stock Exchange that the company is no longer in compliance with one of the NYSE's continued listing standards for a listed company because the average closing price of the company's American Depositary Receipts was less than $1 over a consecutive 30-trading day-period. NYSE notified the company that its ADRs would be delisted if it is not able to comply with the Dollar Price Standard within the applicable cure period. As of April 6, 2020, the average closing price of Natuzzi's ADRs over the preceding consecutive 30 trading-day period was 78c per ADR. The issuance of the notification is not discretionary and is sent automatically when a listed company's share price falls below the Dollar Price Standard. The company can regain compliance at any time during the cure period if, on the last trading day of any calendar month during the cure period, the company has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month. In the event that the company is not in compliance with the Dollar Price Standard at the end of the cure period, the company expects that the NYSE will commence suspension and delisting procedures. Until then, the company's shares are expected to continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards. A delisting from the NYSE is not expected to affect the company's business operations and is not expected to conflict with or cause an event of default under any of the company's material debt or other agreements. Since March 17, 2020, the company has also not been in compliance with the NYSE's continued listing standard set forth in Section 802.01(b) of the NYSE Listed Company Manual, which requires the company to maintain an average global market capitalization of not less than $15M over a consecutive 30-trading day period. In response to the COVID-19 outbreak, the NYSE has suspended the application of the Dollar Price Standard and of the Capitalization Standard until June 30, 2020. In light of this, the cure period for the company to regain compliance with the Dollar Price Standard will expire on December 16, 2020. However, the company's current capitalization suggests that the NYSE may commence proceedings to delist the company's ADRs from the NYSE within 30 trading days of the expiration of the suspension period of the Capitalization Standard, regardless of any action taken by the company to cure its non-compliance with the Dollar Price Standard prior to the expiration of the cure period for the Dollar Price Standard. Therefore, the company notified the NYSE on April 21, 2020 that it does not currently intend to take any action in connection with its non-compliance with the Dollar Price Standard. The company may reconsider this in the future if, among other things, its global market capitalization has risen above $15M following the Covid-19 suspension.