Shares of Brentwood-based Diversicare Healthcare Services are no longer changing hands on the Nasdaq after the skilled nursing services company couldn’t get back above the stock exchange’s minimum market value threshold.
Nasdaq officials on Friday filed notice with the Securities and Exchange Commission of Diversicare’s delisting based on its falling short of a $35 million market capitalization hurdle. That rule means Diversicare’ roughly 6.7 million shares outstanding would need to trade well above $5 apiece but they haven’t changed hands there for nearly a year. They spent most of the first half of 2019 around $4 and haven’t traded above $3 since early August. On Friday, they were worth about $2.60 apiece (Ticker: DVCR) and trading over the counter.
Diversicare approached and then slid below the Nasdaq’s standards after the company’s leaders announced last November that they were setting aside more than $6 million to potentially settle a U.S. Department of Justice investigation into alleged false claims. In August, the execs — who this summer appealed the Nasdaq’s initial ruling without success — added $3.1 million to that pot and said they are close to broader agreement with the feds.
The formal delisting ends 13 years of life on the Nasdaq for Diversicare. The company, then still called Advocat Inc., moved from an over-the-counter listing to the exchange in September 2006.