Reuters April 18th- After having its stock finish below $1 for 30 consecutive trading days in a row, WeWork Inc (WE.N) announced on Tuesday that it had received a non-compliance warning from the New York Stock Exchange.
The company’s stock dropped 2% in after-hours trading, to 48 cents.
WeWork said the firm will be given six months to get back into compliance after receiving the notification and that de-listing would not occur immediately.
Debt-laden WeWork has been struggling to earn a quarterly profit since going public in 2021, therefore in an effort to preserve cash, the company reached agreements this month to reduce its debt by approximately $1.5 billion and delay the date of some maturities.
In spite of the positive effects of widespread layoffs in the IT industry, the organization has been experiencing an increase in remote and flexible employment.
According to Refinitiv statistics, WeWork’s market cap has dropped 65% so far this year, to $360.9 million. In 2019, it was estimated to be worth up to $47 billion.