BMHC receives NYSE warning

Building Materials Holding Corp. (BMHC), the industry’s fifth largest pro dealer, could lose its place on the New York Stock Exchange (NYSE) because it is no longer in compliance with listing standards. In an Oct. 16 filing with the Securities and Exchange Commission, BMHC said it received an Oct. 10 warning from the NYSE regarding the company’s average closing share price, which had not hit the $1 or more threshold for 30 consecutive trading days.

The San Francisco-based company has six months, or until April 10, 2009, to cure the deficiency before the NYSE initiates suspension and delisting procedures. To comply with the NYSE standards, both a $1.00 closing share price and a $1.00 average share price must be maintained.

In addition, the company must maintain a minimum average market capitalization of $25 million over a 30-day trading period. According to the SEC filing, BMHC’s market capitalization was $22.4 million on Oct. 16 and $26.1 million over the preceding 30-day trading period.

“The company will continue to monitor its compliance with this standard but may not be able to maintain the required market capitalization level,” BMHC said in a statement filed with the SEC. Non-compliance with this requirement results in immediate initiation of suspension and delisting procedures.

In a separate press release, BMHC said it intends to consider “all available alternatives” to keep its BLG moniker, including a reverse stock split. It also noted that a failure to be listed on the NYSE would not constitute a default under the company’s credit agreement, which includes a recently negotiated amendment to its $540 million secured credit facility.

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