Hallmark Financial Services notified the Nasdaq Stock Market LLC on December 26, 2023, of its decision to voluntarily delist its common stock from the Nasdaq Global Market. Following this announcement, the company’s stock witnessed a decline, opening at $1.26 on Wednesday after closing Tuesday’s trading at $1.57.
At the time of this publication, Hallmark Financial Services Inc stock (HALL) has witnessed a decline.
Hallmark Financial Services Inc
Current Price: $1.06
Change : -0.51
Change (%): (-32.48%)
Volume: 278.4K
Source: Tomorrow Events Market Data
Trading of Hallmark Financial Services’ common stock will be suspended at the open of business on January 5, 2024. The company plans to file a Form 25 with the Securities and Exchange Commission (SEC) on or about January 5, 2024, with the delisting taking effect no earlier than ten days thereafter. This decision stems from the company’s failure to meet two requirements for continued listing on the exchange and the absence of a viable plan to remedy these deficiencies within the established grace periods.
On September 28, 2023, Nasdaq Regulation notified Hallmark Financial Services that it no longer met Rule 5450(b)(1)(c), requiring listed companies to maintain a minimum “Market Value of Publicly Held Shares” of at least $5,000,000 over the last 30 consecutive business days. The company had 180 calendar days to regain compliance, with a deadline of March 26, 2024, to avoid delisting. However, the company’s common stock failed to close at $5,000,000 or above for at least 10 consecutive business days within the compliance period.
Furthermore, on November 16, 2023, Nasdaq Regulation informed the company that it no longer met Rule 5450(b)(1)(A), mandating a minimum of $10,000,000 in stockholders’ equity for continued listing. The company had until January 2, 2024, to submit a plan to regain compliance. However, facing challenges in presenting a viable remediation plan to Nasdaq by the impending January deadline, the company’s Board of Directors determined that compliance with the requirements was unlikely within the specified timeframes.
As a result, the Board approved the delisting of the company’s Common Stock from the Nasdaq Global Market, considering it a strategic move towards a smooth and cost-efficient transition away from Nasdaq. Hallmark Financial Services anticipates its common stock to be quoted on the Pink market or another market operated by OTC Markets Group Inc. (the “OTC”), ensuring continued trading availability. However, the company acknowledges that there is no assurance regarding a market being made in the common stock or the continuity of trading on an OTC Market or elsewhere.
Despite the delisting, Hallmark Financial Services affirms its commitment to continue reporting under the Securities Exchange Act of 1934, as amended. The company expects that the delisting of its common stock will not impact its business operations. Investors and stakeholders will be keenly observing how this transition unfolds in the coming weeks, and the company’s future performance in alternative trading markets.
