(Source: PRNewswire-FirstCall)
SAN FRANCISCO, Oct. 16 /PRNewswire-FirstCall/ -- Building Materials Holding Corporation , a leading provider of building materials and construction services to professional residential builders and contractors, today announced that it is not in compliance with the continued listing standards of the New York Stock Exchange ("NYSE") because the thirty-trading- day average closing price of the Company's common stock was less than $1.00.
The Company intends to cure the deficiency, and will remain in communication with the NYSE throughout the process. Under NYSE rules, the Company generally has six months to cure this deficiency before the NYSE initiates suspension and delisting procedures. If the trading average does not sufficiently improve, the Company intends to consider all available alternatives including, among other things, a reverse stock split. During the six-month cure period, the Company's common stock will remain listed on the NYSE, provided that the Company continues to satisfy the minimum market capitalization standard, which requires the Company to maintain a thirty- trading-day average market capitalization of at least $25 million. As of October 15, 2008, the Company's thirty-trading-day average market capitalization was $26.6 million. The Company will continue to monitor its compliance with this standard but may not be able to maintain the required market capitalization level. Any failure to comply would result in immediate delisting from the NYSE without any cure period.
The Company noted that failure to be listed on the NYSE would not constitute a default under the Company's credit agreement. In addition, the Company noted that delisting would not affect the Company's business operations and does not change its SEC reporting requirements.
Robert E. Mellor, Chairman and Chief Executive Officer, stated, "Clearly our stock price has been impacted significantly by the continuing pressure on the homebuilding sector, the unprecedented turmoil in the financial markets, and the difficulty we face in such an environment. Despite this, we have continued to implement operational and financial actions designed to address the impact of the downturn. In particular, we have recently announced the successful negotiation of an amendment to our $540 million secured credit facility. In September, we also completed our project of centralizing back- office functions on schedule, and remain on target to substantially complete our operational restructuring program by the end of this quarter."
About BMHC
BMHC is one of the largest providers of building materials and residential construction services in the United States.
