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Impac Mortgage At Risk Of Delisting From NYSE

Aug 29, 2022
IMPAC Mortgage Corporation has announced its next generation non-QM product series, the iQM Series

Exchange tells mortgage lender it no longer meets listing standards.

NYSE American LLC, which operates the New York Stock Exchange, has notified Impac Mortgage Holdings Inc. that it is no longer in compliance with the exchange’s listing standards.

Impac Mortgage, a mortgage lender and servicer based in Irvine, Calif., said Monday it received the notice Aug. 26, 2022, from NYSE American that it “is not in compliance with the continued listing standard set forth in Sections 1003(a)(ii) and 1003(a)(iii) of the NYSE American Company Guide.”

The standards apply if a listed company has shareholders’ equity of less than $4 million and has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years, and has shareholders’ equity of less than $6 million and has reported losses in its five most recent fiscal years. Both apply to Impac.

Earlier this month, Impac reported shareholders’ equity of about $3.5 million as of June 30, 2022, the end of its fiscal second quarter of 2022, and has had losses from continuing operations and/or net losses in each of its five most recent fiscal years, including the fiscal year ended Dec. 31, 2021. 

As a result, Impac is subject to the procedures and requirements of Section 1009 of the Company Guide, which requires a company to submit a plan to NYSE American addressing how it intends to regain compliance within 18 months. Impac must submit its plan by Sept. 26, 2022, which means it must achieve compliance by Feb. 26, 2024.

In a news release, Impac said it “intends to prepare and timely deliver a plan of compliance to NYSE American.” 

If Impac does not submit a plan, or if the plan it submits is not accepted by NYSE American, it will be subject to delisting proceedings.

“In addition, if the plan is accepted by NYSE American, but the company is not in compliance with the continued listing standards by Feb. 26, 2024, or if the company does not make progress consistent with the plan, the company will be subject to delisting proceedings,” Impac said.

Impac will have the right to appeal any delisting determination made by NYSE American staff. If the plan is accepted, it will also be subject to periodic reviews by NYSE American, including quarterly monitoring for compliance with the plan.

Impac’s common stock will continue to trade under the symbol “IMH,” but will have an added designation of “.BC” to indicate that it is not in compliance with listing standards. 

In addition, receipt of the notice does not affect its business, operations, or reporting requirements with the Securities and Exchange Commission, the company said.

About the author
David Krechevsky was an editor at NMP.
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