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Verso Addresses Additional NYSE Continued Listing Standard

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Verso Corp., Memphis, Tenn., USA, yesterday (August 19) announced that the New York Stock Exchange has notified Verso that it has fallen below the NYSE's continued listing standard requiring that Verso's average market capitalization be at least $50 million over a consecutive 30-trading-day period. As of this past August 13, the date of the NYSE notification, Verso's average market capitalization over the past 30 consecutive trading days was approximately $44.2 million.

Under the NYSE's rules, Verso has 45 days from the date of the NYSE notification to submit to the NYSE a business plan to demonstrate Verso's ability to achieve compliance with the average market capitalization standard within 18 months after the notification date, i.e., by February 13, 2017. Verso intends to submit a business plan to the NYSE by the due date of Sept. 27, 2015. The NYSE then will have 45 days to evaluate the business plan and determine whether Verso has made a reasonable demonstration of its ability to achieve compliance with the average market capitalization standard within the 18-month plan period. The NYSE either will accept the business plan, at which time Verso will be subject to quarterly monitoring for compliance with the plan, or it will not accept the business plan, in which case Verso will be subject to suspension by the NYSE and delisting by the Securities and Exchange Commission. 

In the meantime, Verso's common stock will continue to be traded on the NYSE, subject to Verso's compliance with other NYSE continued listing requirements. In this regard, and as previously disclosed on June 24, 2015, the NYSE notified Verso that it had fallen below the NYSE's continued listing standard requiring that the average share price of Verso's common stock be at least $1.00 over a consecutive 30-trading-day period. To avoid suspension and delisting under this standard, Verso must bring the share price and the average share price of its common stock back to at least $1.00 within six months after the notification date, i.e., by Dec. 24, 2015, subject to the extension of such deadline in the event that Verso undertakes to conduct a reverse stock split following its next annual stockholders meeting to be held in May 2016.

 

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