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Summary
- The New York Stock Exchange suspended GTT Communications’ trading and started delisting proceedings.
- GTT Communications does not expect to file the restated statements and delayed filings before August 17.
- The stock, which returned around 63 percent in June, was down 34 percent year to date.
GTT Communications, Inc. (NYSE:GTT) stock did not open for trading on Friday as the New York Stock Exchange suspended its trading and decided to start delisting proceedings.
The Virginia-based internet and cloud networking service provider’s stock closed at US$2.36 on Thursday.
The company had a market capitalization of US$138.8 million as of July 1. The shares traded in the range of US$8.52 to US$1.37 in the 52-week period.
GTT Communications stock fell 34 percent year to date but the stock returned 63 percent in June.
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Why is GTT Communications’ trading suspended?
GTT Communications has not been in compliance with the NYSE’s continued listing requirements as the company failed to file its quarterly statements and annual report with the Securities and Exchange Commission in a timely manner.
The company did not publish any of the quarterly reports, starting from the second quarter of 2020, and the annual report for last year.
In December 2020, GTT Communications said its financial reports for 2017, 2018 and 2019 should not be relied upon and needs to be restated because of some accounting errors related to the cost of telecommunications services and certain other items.
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Source: Pixabay
The stock exchange had notified the company of its non-compliance and gave it time until August 17 to file the restated statements and delayed filings.
However, on Friday morning, GTT Communications informed the NYSE that it does not expect to file the statements before August 17. Subsequently, the exchange suspended the trading of the company’s common stock immediately and decided to start the proceedings to remove the stock from the NYSE listing.
GTT Communications noted that the company does not plan to appeal the stock exchange’s decision to delist its stock.
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Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
