Stem Has 45 Days From NYSE Letter to Submit Compliance Plan

Stem, Inc. has 45 days from receiving an Oct. 20 letter from the New York Stock Exchange (NYSE) to submit a plan addressing a shortfall under the exchange’s continued-listing standard.

The standard sets two thresholds: average market capitalization of at least $50 million over 30 consecutive trading days and stockholders’ equity of at least $50 million. Stem did not specify which measure prompted the notice or provide its figures for either one.

Stem notified the NYSE on Oct. 19 and received the exchange’s letter the next day. The company disclosed the notice in an Oct. 23 filing that identifies Section 802.01B of the NYSE Listed Company Manual.

Stem intends to notify the exchange within 10 business days of receiving the letter that it plans to submit a compliance plan. The separate 45-day deadline for submitting the plan also runs from receipt of the Oct. 20 letter. The plan must explain how Stem expects to meet the standard within 18 months and include quarterly milestones.

After receiving the plan, the NYSE will decide within 45 days whether Stem has reasonably demonstrated that it can regain compliance during the 18-month period. If the exchange accepts the plan, Stem will face quarterly reviews while working toward compliance.

Stem’s common stock can continue trading on the NYSE during the compliance period, subject to the exchange accepting its plan, quarterly review if accepted and compliance with other listing requirements. Stem said the notice does not affect its business operations, Securities and Exchange Commission reporting requirements or obligations under debt and other agreements.

Stem describes itself as a provider of AI-enabled clean-energy software and services. Its next stated step is to notify the NYSE within 10 business days of receiving the letter that it intends to submit a plan.