Building Materials Holding Corporation, the San Francisco-based pro dealer and construction services provider, revealed Thursday, Oct. 23, that the New York Stock Exchange (NYSE) will suspend trading of the company's common stock on Oct. 29 and delist the company. As a result, BMHC said it will move trading of its common stock to the OTC Bulletin Board.
According to NYSE, BMHC failed to meet minimum market capitalization standards. The move comes one week after BMHC announced it wasn't in compliance with NYSE standardsbecause the 30-trading-day average closing price of the Company's common stock was less than $1. BMHC said then that it planned to "cure the deficiency" and noted NYSE rules generally give a company six months before the NYSE initiates suspension and delisting procedures. On Oct. 23, however, BMHC didn't discuss its efforts to stay with the NYSE and instead talked about the economy.
"The dramatic downturn in the homebuilding sector has had a direct impact on our stock price and market capitalization," Robert Mellor, chairman and CEO of BMHC, said in a statement released Thursday evening.
"We expect a number of market participants to make a market in our stock in the OTC system and that our investors will be able to continue trading BMHC shares," Mellor added. BMHC also noted that it did not expect the move to OTC to "constitute a default under the company's credit agreement" or any of its operations.
In recent months, BMHC has consolidated operations while pulling out of a number or underperforming markets. Last August, it pulled its completely discontinued all SelectBuild construction services operations in Florida.
BMHC ranked fifth on the 2008 ProSales 100 with 2007 total sales of $2.29 billion.