SUGAR LAND, Texas - Team, Inc. (NYSE: TISI), a provider of specialized industrial services, disclosed on Thursday that it has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with the exchange's listing standards.
The notice, dated March 14, 2024, indicates that Team Inc.'s average global market capitalization fell below the $50 million threshold over a consecutive 30-day trading period, and its shareholders' equity was also less than $50 million.
The company is now in a position where it must submit a plan to the NYSE within 45 days to outline the steps it will take to regain compliance with the NYSE's continued listing standards within the next 12 months.
The NYSE will then need to approve any proposed plan. While the notice does not immediately affect Team Inc.'s stock listing, which will continue to trade on the NYSE during the cure period, it raises concerns about the company's financial stability.
Team Inc. has communicated that it is exploring all available options to regain compliance and maintain its listing on the NYSE. However, there is no certainty that the company will be able to meet the necessary conditions. The notice has no immediate consequences on the company's debt or other material agreements.
Headquartered in Sugar Land, Texas, Team Inc. operates in 15 countries, providing a range of services from conventional to highly specialized inspection, maintenance, and repair services aimed at improving safety, reliability, and operational efficiency for clients' critical assets.
The company's future prospects have been addressed as forward-looking statements, subject to various factors and uncertainties that could cause actual results to differ materially. These include the company's ability to generate sufficient cash flow, its liquidity and financing options, the impact of external events such as natural disasters and pandemics, regulatory changes, and currency fluctuations.
This latest development comes as Team Inc. is also focused on implementing cost-saving measures and navigating other financial challenges outlined in its regulatory filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Team, Inc.
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