Drive Shack closed today at 24 cents per share after hitting a 52-week low of 15 cents per share less than 24 hours after it announced its intentions to de-list from the New York Stock Exchange and to deregister its common stockand suspend its reporting obligations.
In a statement issued late Dec. 13, the company, whose stock has been in freeflow for the past several months, cited its current “inability to realize the traditional benefits of public company status,’’ which is a Wall Street way of saying it is having a difficult time raising capital.
The statement also said that Drive Shack’s low trading value, and the resulting low trading volume, “limits our securities’ liquidity and affects our ability to raise capital from the public markets, effectively use our securities as transaction consideration, attract interest from institutional investors or market analysts or otherwise realize the traditional benefits of being a publicly traded company.’’
For the first nine months of this year, Drive Shack reported revenue of $244 million compared to $211 million the same period in 2021, but with a loss of $30 million versus $13 million the same period in ‘21.
The company, which owns/operates Drive Shack and Puttery venues as well as golf courses under the American Golf umbrella, this past October received a notice that its securities were not in compliance with the continued listing standards of the NYSE.
Drive Shack in its statement said it anticipates it will file with the Securities and Exchange Commission to the delist and deregister it securities on or about December 23, 2022, and anticipates that the delisting and deregistration will become effective on or about January 3, 2023.
The company, according to the statement, intends to file an application for its common stock to be quoted on the OTCQX platform, and intends to receive approval in the first quarter of 2023.