Ferrellgas Partners LP announced its intention to voluntarily delist its common units from the New York Stock Exchange (NYSE).
The announcement follows the company’s receipt of notice from the NYSE that it is not in compliance with the continued listing standards and, as a result, has been subject to the procedures outlined in Sections 801 and 802 of the NYSE Listed Company Manual.
Ferrellgas fell out of compliance with the NYSE in 2019 because the average closing price of the company’s common units over a consecutive 30-day trading period was less than $1 per unit.
The board of directors approved a resolution authorizing the company to voluntarily delist from the NYSE for an indefinite period of time. Ferrellgas says it believes delisting from the NYSE will be temporary. The company also believes that as it resolves its balance sheet issues, with help from its financial and legal advisers, the issues causing the delisting should be resolved.
Ferrellgas says it has notified the NYSE of its intent to voluntarily delist its common stock from the stock exchange. The company anticipates that it will file with the Securities and Exchange Commission a Form 25 relating to the delisting of its common units on or about Dec. 30, 2019, and anticipates that the delisting of its common units will become effective on or about Jan. 9, 2020. The company does not expect the delisting to have any adverse effects on its business operations.
The nation’s second-largest retail propane company, Ferrellgas intends to apply to have its common units quoted on the OTCQB tier of the OTC markets. The company says it will remain subject to the periodic reporting requirements of the Securities Exchange Act of 1934, as amended.
Ferrellgas would become the second national propane company to drop from the NYSE in as many years. AmeriGas’ common units are no longer traded on the stock exchange after AmeriGas Partners LP merged with its parent company, UGI Corp., in August 2019. UGI acquired about 69.2 million public common units of AmeriGas that it did not already own in completing the buy-in of AmeriGas, the nation’s largest retail propane marketer.