Equus Receives Notice of Non-Compliance with New York Stock Exchange Share Price Rule

Equus Total Return (EQS) received notification from the NYSE on May 15, 2025, that it is not in compliance with NYSE listing standards because its average closing share price was below $1.00 for 30 consecutive trading days; however, the notice does not currently affect the listing or trading of EQS. Equus intends to submit a plan to the NYSE by May 25, 2025, to regain compliance within a six-month period, potentially including a reverse stock split, which will be voted on at the company's annual meeting on June 26, 2025.

Analysis

Equus Total Return, Inc. (EQS) announced on May 20, 2025, that it received a notice from the New York Stock Exchange (NYSE) on May 15, 2025, indicating non-compliance with Section 802.01C of the NYSE Listed Company Manual. This non-compliance stems from the company's common stock having an average closing price below $1.00 over a consecutive 30 trading-day period. The notice, which carries a negative sentiment score of -0.5 specifically for EQS and contributes to an overall cautious tone, is a notice of deficiency and does not immediately affect the stock's listing or trading on the NYSE. Equus intends to notify the NYSE by May 25, 2025, of its plan to cure this deficiency and has a six-month period to regain compliance. To regain compliance, Equus must achieve a closing share price of at least $1.00 on the last trading day of any calendar month during the cure period and an average closing share price of at least $1.00 over the 30 trading-day period ending on that day. The company is considering available alternatives, including a reverse stock split, which has been proposed for authorization at its upcoming annual stockholders' meeting scheduled for June 26, 2025. If stockholder approval is obtained for such an action, the price condition could be deemed cured if the share price promptly exceeds $1.00 and remains above that level for at least the following 30 trading days. The company stated that this notice is not anticipated to impact its ongoing business operations or its reporting requirements with the U.S. Securities and Exchange Commission, despite the regulatory and governance implications highlighted by the situation.

Key Decisions for Investors

• Investors should closely monitor Equus's formal plan to regain NYSE compliance, expected by May 25, 2025, and the outcome of the shareholder vote on the proposed reverse stock split at the June 26, 2025 annual meeting, as these are critical catalysts.
• Given the negative sentiment and the stock's sub-$1.00 trading price, existing shareholders should assess the heightened risk profile, including potential dilution or adverse price movements resulting from a reverse stock split, and the ongoing uncertainty until compliance is restored.
• Potential investors should exercise caution and await further developments regarding the company's ability to successfully execute its cure plan and sustain a share price above the $1.00 threshold before committing capital.