F45 To Delist Stock From NYSE Amid Financial Troubles
F45 decided delisting was the best option given its “current inability to realize the traditional benefits of public company status”
F45 Training is voluntarily delisting from the New York Stock Exchange and will suspend its reporting obligations, a move the fitness franchise says will relieve it of considerable expenditures and allow for substantial cost savings.
In response to the delisting announcement, F45 shares were trading at $0.18 late Tuesday morning, down 69% in the last month.
The news follows a recent SEC filing in which F45 stated that its Q2 quarterly earnings report would be late for the period ending June 30, 2023.
The boutique fitness franchise expects to file a Form 25 with the SEC related to the delisting and deregistering of its common stock on or about August 24 and anticipates that it will become effective on or about September 3.
The NYSE had issued a notice in May to the Mark Wahlberg-backed functional fitness company for failing to comply with its listing standards and falling behind on public filings.
F45’s common stock has continued to trade below $1.00 per share since the notice, and the company says it considered whether to remain listed or “go dark” before deciding that delisting would be the best option due to the expected substantial cost savings and F45’s “current inability to realize the traditional benefits of public company status.”
As F45 points out, its continued low trading value and trading price affect the ability of the fitness company to raise capital. The functional fitness company also says delisting will allow its management and employees to focus on managing F45 and strengthening relationships with franchisees and vendors.
F45 states that it will continue to focus on long-term growth, and delisting will allow the company to move ahead “without the distraction of short-term financial results and stock price movement.”
The financially troubled fitness franchise appointed Patrick Grosso as interim chief financial officer after Robert Madore resigned earlier this summer. Before Madore exited F45, the company announced it had made “material errors” in its 2021 and 2022 financial statements and warned that its net losses were likely significantly higher than initially reported.
