FlyExclusive receives notice of potential delisting from the NYSE

After missing its 10-K filing deadline, FlyExclusive is the latest private jet provider to receive a notice of non-compliance.

By Doug Gollan, April 22, 2024

FlyExclusive announced this morning that on April 17, 2024, it received a notice of possible delisting from the New York Stock Exchange that it is not in compliance with Section 1007 of its rules because it has yet to file its 10-K for 2023 with the Securities and Exchange Commission.

The company had filed for a two-week extension on April 2, 2024

On Friday, FlyExclusive CEO Jim Segrave said he expects the filing would be completed by the end of the month.

The release states, “The notice has no immediate effect on the listing of the company’s common stock on the NYSE.”

The company has up to 12 months to regain compliance, although “the NYSE may nevertheless commence delisting proceedings at any time if it believes, in its sole discretion, that continued listing and trading of the company’s securities on NYSE is inadvisable or unwarranted.”

FlyExclusive said, “Subsequent to filing the (extension request) Form 12b-25, the company continued to dedicate significant resources to the completion of the Form 10-K but was unable to file by April 16, 2024, the end of the extension period provided by the Form 12b-25. As a newly public company and having become a taxable corporation in December 2023, the company requires additional time to complete the financial reporting and close procedures for the fourth quarter of fiscal year 2023.”

It continued, “The company is working diligently to complete the necessary work to file the Form 10-K as soon as practicable and intends to regain compliance with the Exchange’s continued listing standards. The company currently expects to do so by the end of April, although there can be no assurance of that timing, nor that the company will ultimately regain compliance with all applicable Exchange listing standards. In addition, the company reiterated its quiet period policy, specifically that it does not comment on or update financial guidance other than through and upon public release of financial results in a company-issued broadly distributed press release and/or a filing with the Securities and Exchange Commission.”

Until FlyExclusive files Form 10-K, the company’s common stock and warrants will remain listed on the NYSE under the symbols FLYX and FLYXWS and be assigned an LF indicator to signify late filing status.

FlyExclusive is the fifth-largest charter/fractional private jet operator in the U.S.

Delisting Notices

FlyExclusive is the third private flight provider to receive a delisting notice following an SPAC IPO, along with Wheels Up and Jet.AI.

Wheels Up received its notice last year after its stock traded below one dollar for 30 consecutive trading days.

It cured the deficiency via a reverse stock split.

Jet Token, now known as Jet.AI, received its second delisting notice last week.

The NASDAQ-traded flight provider’s first notice cited insufficient market cap. The latest was based on stock price, like Wheels Up.

It has said it is working on various remedies.

Surf Air, which went public last year via a direct list, also received a delisting notice earlier this month.

(Editor’s note – An earlier headline noted FlyExclusive received a “delisting notice.” The notice of non-compliance could lead to a delisting if not cured. We have updated the headline to more accurately reflect this.)

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