voxeljet AG, a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, received a notice of noncompliance from the New York Stock Exchange on April 20, 2020, regarding Section 802.01C of the NYSE’s Listed Company Manual due to the fact that the average closing price of the Company’s American Depositary Shares (“ADSs”) had fallen below $1.00 per share over a period of 30 consecutive trading days. As set forth in the Notice, as of April 17, 2020, the Company had a 30 trading-day average closing share price of $0.96. Because of the COVID-19 pandemic,voxeljet received an extension to comply with the NYSE requirements and now has until April 2020 for its stock to go back to trading above $1.00.
voxeljet is a solid company with a solid product and, while it has not been able to experience the exponential growth some had hoped for at the time of the IPO, it has been turning some profits and investing significantly in research and development. Possibly the single biggest shortcoming shown by voxeljet in these last few years has been the company’s inability to effectively work with media to communicate it’s products. Perhaps that’s because the company’s management is under the impression that its products are strictly targeted at industrial users that require direct instructions rather than publicity. And that may very well be so, however, the US stock market has other requirements as well.
Mainly the stock market needs that a large enough segment of the population learns about and has access to a company’s products. Voexeljet’s technology to 3D print very large casting molds and foundry cores may be something that only a niche of industrial adopters today have a requirement for. However, its capabilities to rapidly 3D print very large sand parts, or series of very precise technical ceramic parts or – again – its recently developed HSS capabilities for high-speed polymer 3D printing could appeal to a much wider demographic than that which the company has been targeting. In order to reach this demographic, voxeljet’s management should have aggressively and proactively reached out to the media – not just generalist media (and the company’s CEO Ingo Ederer has done on occasion) and vertical industrial tooling media, but especially media that work to bring 3D printing to a wider public.
That has not happened and, while this is not uncommon among 3D printing companies, this lack of adequate communication and media support is likely to blame for the company0s current stock market woes, since voxeljet’s business is otherwise entirely sound and continues to hold very significant potential. As market analysts, we do expect 3D printing of molds and foundry cores to become much more widespread and as journalists we expect ceramic and sand (and cement) binder jetting technologies to be able to offer an alternative for the production of end-use parts. Hopefully, voxeljet will be able to turn this around.
Voxeljet said that it now intends to work diligently in an effort to remedy the deficiency in a timely manner and, in accordance with NYSE listing requirements. The Company can regain compliance with Section 802.01C at any time during the cure period if on the last trading day of any calendar month during the cure period, its closing share price is at least $1.00 and the average closing share price is at least $1.00 over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the cure period, both a $1.00 closing share price on the last trading day of the cure period and a $1.00 average closing share price over the 30 trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures.
In addition, voxeljet is not in compliance with Section 802.01B of the NYSE’s Listed Company Manual due to the fact that its average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its shareholders’ equity was less than $50 million. In connection with the August 2019 notice, on January 24, 2020, the NYSE accepted the Company’s 18-month plan with respect to the deficiency under Section 802.01B. The Company currently remains out of compliance with the continued listing standard set forth in Section 802.01B.
On April 21, 2020, the NYSE announced that in response to the COVID-19 pandemic and related extraordinary market conditions, it is providing temporary relief from the $1.00 minimum share price standard and the $50 million market capitalization standard through June 30, 2020. As a result, the Company has until December 29, 2020, and May 4, 2021, to regain compliance with the $1.00 minimum share price standard and the $50 million market capitalization standard, respectively.
The Notice has no immediate impact on the listing of the Company’s ADSs, which will continue to be listed and traded on the NYSE during the cure period under the trading symbol “VJET,” subject to continued compliance with the other listing requirements of the NYSE. However, the trading symbol will have an added designation of “.BC” to indicate that the status of the ADSs is “below compliance” with the NYSE continued listing standards. The “.BC” indicator will be removed at such time as the Company regains compliance.
The Notice does not affect the Company’s business operations or its reporting obligations with the Securities and Exchange Commission, and it does not conflict with or cause an event of default under any of the Company’s material debt or other agreements.