Struggling electric drive company Enova receives de-listing notice from NYSE
Enova Systems Inc. is an electric drive systems developer that has been working in the commercial fleets market. On Thursday, the company received notice from the NYSE MKT that they are no longer in compliance with the exchange's listing standards and so its securities are subject to de-listing.
In May, the struggling Enova had submitted a plan of compliance to advise NYSE of actions that they would be taking to regain compliance by October 15, 2013. In a series of letters to the company and now with this de-listing notice, NYSE has told Enova that they do not believe their plans to be realistic or possible. They cite the company's stockholder equity less than $4 million, three fiscal years of continued losses, and a low price per share for a significant period of time as reasons for non-compliance. NYSE further said that the financial projections in their plan for re-compliance did not demonstrate an ability to regain compliance.
Last month, Enova disclosed the resignation of Chief Executive Officer and Director Michael Staran and Chief Operating Officer John Mullis as well as Director Rich Davies. This removal of much of the top-level executives in the company was cited as a harbinger of worse things to come. With those executive-level exits and this notice of de-list by NYSE, it will be difficult for the company's issued stock to stay afloat.
The company has a limited right to appeal the determination of the Staff by requesting, on or before 12 July 2012, a hearing with the Listing Qualifications Panel. Enova siad it intends to exercise its right of appeal. There is no assurance that the request for continued listing will be granted.
Enova is based in Torrance, California and issued a press release regarding this possible NYSE de-listing.