NYSE To Delist Impac Mortgage For Non-Compliance – NMP Skip to main content

NYSE To Delist Impac Mortgage For Non-Compliance

May 01, 2023

Company says it can't meet standards and won't appeal decision.

Eight months after first being told it was at risk of being delisted, Impac Mortgage Holdings Inc. has been notified by NSE American LLC that it will delist the company’s stock from the New York Stock Exchange.

In a news release last week, Impac said the NYSE American also “immediately suspended trading in the company’s common stock,” and that the company does not intend to appeal the decision.

NYSE American stated that because Impac is not in compliance with the exchange’s $2 million, $4 million, and $6 million shareholders’ equity requirements, and because the company informed the NYSE American in its required quarterly plan update that it “cannot continue to demonstrate an ability to return to compliance by Feb. 26, 2024, which was the date the NYSE American originally granted the company to regain compliance,” delisting is appropriate.

Impac said that, following delisting, it expects its common stock will commence trading on the OTC Pink under the symbol “IMPM,” effective April 27.

Founded in 1995, Impac Mortgage Holdings Inc. is based in Newport Beach, Calif., and is a publicly traded company that, through its subsidiaries, offers a wide range of integrated consumer and business services within the mortgage and real estate marketplaces. The company has originated and acquired more than $90 billion in mortgages since its founding.

Impac was first warned of the potential for delisting in August last year, when NYSE American told the company it was no longer in compliance with the exchange’s listing standards. On Sept. 26, 2022, Impac submitted a plan to NYSE American advising it of the steps it intended to take to regain compliance. In November, NYSE American notified Impac it had accepted the company’s plan and granted Impac until Feb. 26, 2024, to regain compliance. 

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.

Impac had reported shareholders’ equity of about $3.5 million as of June 30, 2022, the end of its fiscal second quarter of 2022, and said it 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. 

That extended into 2022, when the company reported a net loss of $11.8 million, or 38 cents per diluted common share. It also reported a shareholder deficit of $11.6 million at year’s end. 

Impac’s stock closed Friday at 22 cents per share, with a 52-week high of 88 cents per share and a 52-week low of 5 cents per share.

In March, Impac announced major changes, converting to a mortgage broker model, announcing plans to “wind down” its third-party origination channel, and voluntarily giving up its seller/servicer designation with the government-sponsored enterprises.

The lender and servicer said the changes were being made as it reviewed its operations and expenses in order to better “navigate current market and industry conditions.”

About the author
David Krechevsky was an editor at NMP.
Published
May 01, 2023
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