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NYSE : Enservco noncompliant due to shareholder-equity level

LONGMONT — The New York Stock Exchange has informed Enservco Corp. (NYSE American: ENSV), a Longmont-based provider of specialized well-site services to the oil and gas industry, that it is noncompliant with NYSE’s requirements for stockholders’ equity.

Stockholders held only “approximately $1.2 million at Dec. 31, 2022 (,which is) below the required minimum level,” the company said in a disclosure this week. “This NYSE notice has no immediate effect on the listing or trading of the company’s common stock. Enservco has approximately 13 months to cure the deficiency and regain compliance with continued listing standards and is in contact with the NYSE American on a plan to do so.”

Enservco chief financial officer Mark Patterson said that the company has taken steps to remedy the situation, including a $3.5 million capital raise and the conversion of $1.1 million in debt to equity.

The company is asking its shareholders to approve a plan to convert another $2.5 million in debt to equity. 

Patterson said that Enservco leadership “believe(s) that event would satisfy the NYSE American’s stockholders’ equity requirement.”

The stockholder equity issue is not the first stock-related problem Enservco has faced in recent years.In early 2022, the company, which has traded under $1 since February, decided to delay filing its quarterly disclosures with the U.S. Securities and Exchange Commission to restate financial statements on three quarterly reports for 2021 to adjust for its utilization of certain deferred tax liabilities in 2021.

Source: BizWest