AlerisLife (Nasdaq: ALR) must raise its stock price or face possible delisting from the Nasdaq stock exchange.
The Newton, Massachusetts-based senior living operator on Thursday noted in an SEC filing it has until May 8, 2023, to raise its average to a minimum of $1 for a period of at least 10 consecutive business days. If it does not, it risks being delisted from the stock exchange. The company also may get a second 180 calendar day grace period in that event, according to management.
“[AlerisLife] is monitoring the bid price of the common shares and is considering its options to achieve compliance with the minimum bid price continued listing standard,” reads the financial filing.
AlerisLife’s stock value sat at 80 cents per share when the financial markets closed on Thursday.
This is not the first time Nasdaq has warned the operator to raise its average stock price. AlerisLife — then called Five Star Senior Living — received a similar warning in 2018 after several months of financial headwinds. In response, the company initiated a reverse stock split in 2019 that pushed its average share value above $1.
AlerisLife manages 120 communities with 20 communities it owns across 27 states, making it among the nation’s largest senior living operators.