The New York Stock Exchange has again put Quorum Health on its naughty list, pointing out that the hospital company’s stock price — which averaged 90 cents in the 30 trading days before Dec. 3 — has been below $1 for too long.
Per NYSE rules, Quorum shares (Ticker: QHC) have six months to get back and consistently stay above $1. Should CEO Bob Fish and his team succeed in doing that, they may still have to pay attention to the NYSE’s other warning that Quorum’s market capitalization — $30 million as of Tuesday morning — and that its shareholders’ equity — which was actually a $203 million deficit on Sept. 30 — both need to be at least $50 million by the end of next year.
It’s possible all those concerns will be moot before the NYSE’s deadlines: Kohlberg Kravis Roberts executives last week said they are prepared to recapitalize Quorum by buying out minority shareholders, converting some of the company debt and raising new capital.
This story originally appeared in our sister publication the Nashville Post.