New York Stock Exchange procedures give Grubb & Ellis 45 days from the receipt of the notice to submit a plan to the NYSE demonstrating how it intends to bring the company in compliance with the listing standards. The company "intends to cure the deficiencies and to return to compliance with the NYSE continued listing requirements," it said.
The notice regarding the company's market capitalization followed an earlier notice, in February, that Grubb & ELlis was not in compliance with the NYSE's listing standard related to maintaining a minimum average closing price of $1 per share over 30 consecutive trading days. The company, whose stock closed at 62 cents per share on Monday, said that it has until Jan. 23, 2010 to come back into compliance with the requirement regarding minimum average closing price per share.
The decline in the Grubb & Ellis market capitalization marks a steep fall from its value at the time the company merged with NNN Realty Advisors in December 2007. GlobeSt.com reports at the time said that the newly merged company would have a capitalization of $725 million.
Grubb & Ellis lost $32.8 million for the second quarter, the company reported last week. Interim CEO Gary Hunt said in the company's quarterly conference call that the loss reflected "a continued slowdown in leasing throughout all sectors and a stalled investment sales market" and that "The economy in general and the operating environment for commercial real estate services continue to be extremely challenging."
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