FedNat Holding Company Announces Voluntary Nasdaq Delisting (Updated)
October 26 2022 - 3:18PM
FedNat Holding Company (the “Company”) (Nasdaq: FNHC), a regional
insurance holding company, today announced that it has notified The
Nasdaq Stock Market LLC (“Nasdaq”) of the Company’s decision to
voluntarily delist its common stock from the Nasdaq Global Market
and its intent to file a Form 25 with the U.S. Securities and
Exchange Commission (the “SEC”) on or about November 7, 2022.
The Company has been advised by Nasdaq that, due to concerns
regarding the Company’s noncompliance with Nasdaq’s continued
listing requirements, trading in the Company’s common stock will
not continue beyond the date of filing the Form 25. Therefore,
trading in the Company’s common stock will be suspended prior to
market open on November 7, 2022 and Friday, November 4,
2022 will be the last day of trading of the Company’s common stock
on Nasdaq.
The Company may discuss with market makers for its common stock
the possibility of having its common stock quoted on the
over-the-counter market, but no arrangements have yet been made in
that regard. There can be no assurances that any brokers will
continue to make a market in the Company’s common stock or that
trading of the common stock will continue on the over-the-counter
market or otherwise.
As previously reported, the Company has been out of compliance
with certain of the Nasdaq listing rules, including Nasdaq Listing
Rule 5450(a)(1), which requires listed securities to maintain a
minimum bid price of $1.00 per share (the “Minimum Bid Price
Requirement”), and Nasdaq Listing Rule 5810(c)(3)(A), which
provides that a failure to meet the Minimum Bid Price Requirement
exists if the deficiency continues for a period of 30 consecutive
business days. To regain compliance with these Listing Rules, the
closing bid price of the Company’s common stock must be at least
$1.00 per share for a minimum of 10 consecutive business days prior
to November 27, 2022. In addition, the Company is not in compliance
with Nasdaq Listing Rule 5250(c)(1) because of the ongoing delay in
the filing of its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2022.
Because of uncertainties surrounding the Company’s ability to
regain compliance with the foregoing Nasdaq Listing Rules, the
Company’s Board of Directors has determined that the voluntary
delisting of the Company’s common stock will be in the best
interests of the Company and its shareholders. The Board’s decision
was based on careful review of several factors, including the
likely inability of the Company to regain compliance and the
significant costs associated therewith (including costs associated
with requesting a hearing to obtain an extension of time for
compliance), the benefits to the Company of eliminating the expense
of the Nasdaq listing fees, and eliminating the demands on
management’s time of complying with the Nasdaq listing
standards.
About the Company
FedNat Holding Company is an insurance holding company that
controls substantially all aspects of the insurance underwriting,
distribution and claims processes through our subsidiaries, equity
investments and contractual relationships with independent agents
and general agents. More information is available at
https://www.fednat.com/investor-relations/.
Contacts
David K. Patterson, Interim CEO (954) 308-1322
J. Gordon Jennings III, Interim CFO (954) 308-1201
Bernard Kilkelly, Investor Relations (954) 308-1409
or investorrelations@fednat.com
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