Amwell could find itself dropped from the New York Stock Exchange if it isn’t able to turn its share prices around.
The telehealth mainstay, formerly known as American Well, disclosed Thursday that it had received a warning notice two days prior from the exchange because the average closing price of its common stock was less that $1 per share. NYSE gave the company six months to bring its share price above the $1 cutoff.
In its notice, Amwell said it has told NYSE that it will address the deficiency before the deadline, “including by effecting a reverse stock split, subject to board approval and stockholder approval at its upcoming 2024 annual meeting.
The company’s market cap was a stone’s throw from $6 billion at the height of its valuation, when shares were trading for more than $42 each.
The company’s shares were trading at $0.72 as of market close on Friday, giving the company a current market cap of about $208.6 million. It stressed in the disclosure that the NYSE notice does not have an impact on its business, operations or Securities and Exchange Commission reporting requirements.
In 2023 results reported in February, Amwell reported a 6% year-over-year drop in revenue from $277 million in 2022 to $259 million in 2023. Its losses grew substantially from $272 million to $679 million, due in large part to $436 million of impairment charges caused by its share price decline.
Despite decimating its workforce at the end of 2023 to cut expenses, the company still projects a 2024 loss between $160 million and $155 million amid incremental revenue growth. It also promises a rosier 2025 with a 30% boost in revenue and a roughly 70% improvement in adjusted EBITDA, to a range of a $45 million to $35 million loss.
Amwell has been among the telehealth sector’s most prominent names. It hit the public markets with a bang during the height of the pandemic, when its $742 million initial public offering came in 42% higher than open.
A recent Axios report citing former employees and other insiders, however, painted a dire picture of the company’s strategic decisions the time since.
The sources said that the company spread itself thin amid rising competition and botched multiple integrations with high-profile partners. It also rushed sign-ups for its signature Converge telehealth platform before the offering was prepared for rollout, per the report.
Amwell reported 6.3 million total virtual visits across 2023. It had about $372 million in cash and short-term securities as of its most recently closed quarter.