Low stock price triggers Nasdaq delisting warning for AlerisLife

AlerisLife (Nasdaq: ALR) needs to raise its stock price or face possible delisting from the Nasdaq stock exchange.

The Newton, Mass.-based retirement home operator said in a filing with the SEC on Thursday that it has until May 8, 2023 to raise its average to a minimum of $1 for a period of at least 10 consecutive working days. If not, it risks being delisted from the stock exchange. The company may also benefit from a second grace period of 180 calendar days in this case, according to management.

“[AlerisLife] monitors the bid price for common stock and considers its options to comply with the minimum bid price continuous listing standard,” the financial filing reads.

AlerisLife’s stock was worth 80 cents per share when financial markets closed on Thursday.

This isn’t the first time the Nasdaq has warned the trader to raise its average stock price. AlerisLife – then called Five Star Senior Living – received a similar warning in 2018 after several months of financial headwinds. In response, the company launched a reverse stock split in 2019 that pushed its average share value above $1.

AlerisLife operates 120 communities with 20 communities it owns in 27 states, making it one of the largest senior living operators in the nation.

The company is currently engaged in a restructuring effort in an effort to stabilize its operations. The move came after a leadership transition in which Jeff Leer took over from Katie Potter as CEO.

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