Property/casualty insurer Hallmark Financial Services said it has voluntarily delisted from Nasdaq after failing to meet requirements to remain on the stock exchange.
Hallmark on Dec. 26 provided notice to Nasdaq. The company said its shares will be suspended on Jan. 5, with its delisting taking place about 10 days after it files paperwork with the U.S. Securities and Exchange Commission.
“The company intends to continue reporting under the Securities Exchange Act of 1934, as amended, and the delisting of our common stock is not expected to affect the company’s business operations,” Hallmark said.
The Dallas-based insurer said over the last few months it was told by Nasdaq that it no longer met a requirement to maintain a minimum $5 million market value for 30 consecutive days, or a requirement to have $10 million in stockholders’ equity.
Hallmark’s board on Dec. 26 “determined that there was no viable remediation plan that could be presented to Nasdaq” by a January deadline. The company said it expects its shares will be quoted on the Pink market, or another market operated by OTC Markets Group Inc.
Hallmark in November reported a third-quarter net loss of $21.5 million, which included $13.6 million in losses primarily related to the Maui, Hawaii wildfire event. The company booked a $28.1 million net loss a year ago during the third quarter. For the year as of the end of Q3, Hallmark recorded a net loss of $72.6 million compared to a net loss of $100.7 million the prior year.
In May, rating agency AM Best downgraded the Financial Strength Rating of Hallmark to B++ (Good) from A- (Excellent).
Hallmark’s credit rating was also downgraded by AM Best to reflect “a significant decline in Hallmark’s balance sheet strength and operating performance due to continued adverse reserve development in the group’s retained discontinued commercial auto lines.”