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.
Regional lumber associations to merge
The Northwestern Lumber Association (NLA), a 118-year-old trade organization representing the LBM industry in Iowa, Minnesota, Nebraska, North Dakota and South Dakota, has announced a statement of agreement to merge with the Wisconsin Retail Lumber Association. Representatives from the two organizations are currently working on the details of the merger agreement, which is scheduled to be completed in 2010.
“This is such a natural fit between our organizations,” said Ron Enter, NLA chairman. “We have collaborated on many programs already and our business cultures are very similar. This will be beneficial for all our members.” The two trade groups will have a combined membership of 2,500 people, according to the NLA.
True Value fall market to open in Atlanta
True Value will hold its 2008 Fall Market at Atlanta’s Georgia World Congress Center from Oct. 17 to 20.
Thousands of True Value retailers are expected to attend the event, which will feature more than 1,000 vendors introducing new items and offering market-only deals on merchandise from every major product category.
President and CEO Lyle Heidemann and other True Value executives will address co-op members Oct. 17, and retailers will also have an opportunity to attend educational classes on everything from merchandising and marketing best practices to the True Value Rewards program and leveraging point-of-sale technology.