BUCKSPORT — Verso Paper Corp. has announced that it is at risk of being delisted from the New York Stock Exchange.
Verso announced that it had fallen below the stock exchange’s market capitalization requirement.
Market capitalization is “the value put on the company by the stock market,” explained Ellsworth investment advisor Ben Wootten, who owns Wind River Capital Management. “You multiply the stock price times the number of shares outstanding.”
The stock exchange requires that Verso’s average market capitalization be at least $75 million based upon the number of shares outstanding.
As of Dec. 21, the date of the stock exchange notice, Verso’s 30-trading day average was approximately $66.6 million.
Mike Jackson, president and chief executive officer of Verso, said, “We do not believe that Verso’s current stock price is indicative of the strong operating performance of the company. Verso has ample liquidity and is well positioned to fund its operations and anticipated growth.”
Under stock exchange rules, Verso has 45 days from receipt of the notice to submit a plan that demonstrates its ability to achieve compliance with the market capitalization standard within 18 months.
“Verso intends to respond to the NYSE (stock exchange) in a timely manner,” Jackson said. “In the meantime, Verso’s common stock will continue to be traded on the NYSE, subject to the company’s compliance with other NYSE continued listing requirements.”