F45 Training (NYSE:FXLV) stock is falling hard on Tuesday after the fitness company announced plans to voluntarily delist its shares.
According to a press release from the company, this delisting comes after the New York Stock Exchange alerted it that it isn’t in compliance with listing rules. This has to do with it being behind on public filings, as well as its share price being too low.
After being sent this notice, F45 Training evaluated its options and decided it would be better to go dark than remain listed. The company notes that this also suspends its reporting obligations under the Securities Exchange Act of 1934.
One of the benefits for the company of doing this is no longer having to pay the fees associated with public reporting. It says that this will allow it to better focus on the company’s business and long-term growth.
What This Means For FXLV Stock
Considering that shares of FXLV stock are being delisted, investors will no longer be able to publically trade them. The company says that it will file the delisting on Aug. 24, 2023, and that shares of its stock will be delisted on Sept. 3, 2023.
With this news comes some 271,000 shares of FXLV stock changing hands. For the record, its daily average trading volume is around 443,000 shares. The stock is also down 65.4% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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