Business

NYSE suspends trading of WeWork warrants, to start delisting them

The New York Stock Exchange has suspended trading in WeWork’s warrants due to “abnormally low” trading price levels and will initiate proceedings to delist them, the flexible workspace provider said on Tuesday.

WeWork, which earlier this month warned about its ability to stay afloat, added that the company’s common shares will continue to trade on the NYSE.

It did not intend to appeal the NYSE’s determination on its warrants – which are equity derivative that give the right, but not the obligation, to buy or sell the shares at a certain price before expiration. WeWork had received a non-compliance notice from the NYSE in April, as its stock closed below $1 on average over a consecutive 30 trading-day period.

Shares of the flexible workspace provider were marginally down at around $0.13 after the bell on Tuesday.

In its efforts to regain listing compliance, WeWork last week had said it would proceed with a one-for-forty reverse stock split. WeWork’s shares have lost almost all its value since it went public with an equity value just shy of $9 billion in 2021. The company now has a market cap of $276.5 million, according to Refinitiv data.

The company has been in turmoil ever since its plans to go public in 2019 imploded after investors recoiled at its hefty losses, corporate governance lapses and the management style of then founder-CEO Adam Neumann.

The company whose business model involves taking long-term leases and renting out spaces for a short-term could not turn in a profit till now.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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