Beachbody Receives Deficiency Letter from NYSE, Plans to Consider Available Alternatives
Beachbody is currently less than $1 per share
California-based subscription health and wellness company Beachbody has announced it received a deficiency letter from the New York Stock Exchange (NYSE).
The letter notified Beachbody that the publicly traded fitness company is not in compliance with applicable price criteria in the NYSE’s continued listing standards, adding that the average closing price of the company’s Class A Common Stock was less than $1.00 per share over a consecutive 30 trading-day period as of November 22.
In a press release, Beachbody said it intends to respond to the NYSE within ten business days of receipt of the letter to “cure the deficiency.” The digital fitness and nutrition company now has six months to bring its share price and average share price above $1.00, according to NYSE’s rules.
Beachbody says it will consider alternatives, such as a reverse stock split, pending shareholder approval. If Beachbody decides to cure the price deficiency by taking a stockholder-approved action, the NYSE will deem the price condition cured if the price goes over $1.00 per share and stays above that level for at least the next 30 trading days.
The Class A Common Stock of the fitness company will continue to be listed and traded during this period.
Beachbody recently reported its Q3 results, with total revenue at $165.9 million, a 20% decrease compared to 2021. The fitness brand said it has taken steps to operate more efficiently, with price adjustments and bundle strategies, such as the BODi Bike Studio bundle for $50 a month.
“It’s no secret that we’re pursuing this goal amid substantial challenges facing our entire industry,” Beachbody CEO and co-founder Carl Daikeler said on the recent earnings call. “As pioneers in the fitness space, we’ve navigated through many challenging times before and come out of each period stronger. In fact, we’ve emerged from every economic downturn in better shape than how we entered it, and I expect this to be no different.”
The Beachbody brand also reported it would reinvigorate nutrition revenue with the launch of a gourmet superfood campaign, and plans to introduce gifting programs to drive sales during the holidays.
Photo by tommao wang on Unsplash
