System1 Faces NYSE Compliance Challenge: Stock Price Below $1.00

System1, Inc. (NYSE: SST), an omnichannel customer acquisition marketing platform, has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with its listing standards. The company's Class A Common Stock (SST) has an average closing price below $1.00 over a consecutive 30 trading-day period, which violates Section 802.01C of the NYSE Listed Company Manual. However, the notice does not result in the immediate delisting of SST from the NYSE.

System1 has until January 21, 2025, to notify the NYSE of its intention to cure the average closing stock price deficiency and regain compliance with the NYSE's continued listing standards. The company can achieve this by either increasing its stock price to at least $1.00 and maintaining an average closing price of $1.00 over a 30 trading-day period by the end of any calendar month during the cure period, or by promptly exceeding $1.00 per share and maintaining that level for at least the following 30 trading days.

The notice from the NYSE comes amid broader challenges in the ad-tech sector, where System1 operates in a highly competitive space with tech giants and changing privacy regulations. The sub-dollar stock price reflects deeper market skepticism about the company's business model and growth trajectory. System1's micro-cap status, with a market cap of just $53.8M, coupled with this price deficiency, signals significant underlying business challenges.

System1 has three common outcomes to consider: 1) successful price recovery through business improvement, 2) implementation of a reverse split, or 3) eventual delisting. The company's ability to maintain NYSE listing standards is important for institutional investor access and market liquidity. The delisting warning comes amid concerns about the company's profitability and growth prospects, as micro-cap ad-tech companies struggling with profitability often face an uphill battle regaining investor confidence.



System1's Common Stock will continue to be listed and trade on the NYSE during this period, subject to the company's ongoing compliance with the NYSE's other continued listing standards. The company plans to consider available alternatives to cure the stock price non-compliance and regain compliance with the NYSE listing standards.

In conclusion, System1 faces a critical juncture with the NYSE non-compliance notice, which could impact the company's stock price, investor confidence, and trading activity. The company must act swiftly to address the issue and regain compliance with the NYSE listing standards to maintain its listing and access to institutional investors.