Bright Health's financial woes continue, and the company is now at risk of being pulled from the New York Stock Exchange.
The insurtech said late Monday that it had received a notice from NYSE that it was not in compliance with the exchange's continued listing standards, as its average stock price was at less than $1 per share for 30 consecutive trading days. Shares in Bright Health were trading at 77 cents at about 4 p.m. ET on Tuesday.
Bright Health said it responded to NYSE with plans to "cure the deficiency." During this cure period, it will continue to trade on the exchange and the cure process will not impact its day-to-day business operations.
Bright has six months to come back into compliance with NYSE listing standards, the company said.
"The Company intends to consider available alternatives, including, but not limited to, a reverse stock split, subject to stockholder approval no later than at the Company’s next annual meeting of stockholders, if necessary, to regain compliance," Bright Health said in a release.
The company will be considered back in compliance if its closing share price is at least $1 on the final trading day of the month and its closing price averages at least $1 in the 30 trading-day period prior.
Through a reverse stock split, as the company could pursue, Bright Health would consolidate its stock into fewer, more valuable shares, boosting its share price.
Bright Health went public in late June 2021, setting a new high for insurer initial public offerings, and since then has struggled financially. Earlier this year, the company announced that it would exit the Affordable Care Act exchange market and slash its Medicare Advantage footprint to California, pivoting to focus on its multiplayer care model and NeueHealth business lines.