By MATT BLOIS
The Brentwood based addiction treatment company American Addiction Centers reported on Friday that it’s again at risk of being delisted from the New York Stock Exchange.
Last week, the company received a notice that its market capitalization had fallen below $50 million. AAC will need to submit a plan to improve its market capitalization within the next 45 days to stay on the exchange.
The company’s market capitalization was about $37 million on Monday morning. The company’s market cap in November was about $75 million.
AAC is preparing a plan and expects it will remain listed. According to a press release, the risk of delisting will not affect the company’s business operations.
This is the second time in the past two months the company has reported a risk of being delisted.
AAC was late to file its fourth quarter and full year financial results for 2018, which resulted in a delisting warning in April.
The new delisting is the same warning that the Williamson County-based hospital chain Quorum received earlier this month. Quorum also is preparing to submit a plan to increase market capitalization.
AAC has struggled to find new patients since last summer when a change to Google’s search algorithm hurt the visibility of company websites. That has hurt the company’s financial results.
After several quarters of low patient numbers and poor financial results, executives hosted a conference call last week to discuss a new long term vision for the company. The stock price fell about 22% in the days following that call.
The company disclosed the delisting risk in a press release titled “AAC Webcast Replay Available Until May 27, 2019.”
The stock price for AAC has fallen almost 90% during the past year. In May 2018 shares were trading for about $11.40. On Monday the stock price was about $1.30.