F45 Training Holdings (NYSE: FXLV) stock is down 63%. FXLV stock still having a residual value is one of those things that mildly surprises. We assume it’s simply that not everyone has quite grasped the implications of this new move and announcement. For F45 is to “go dark”, that is to completely delist. This means there will be no liquidity in the stock at all - and thus no method of retaining or regaining any value from it. Thus we’re slightly surprised that not everyone has dumped it and headed for the door.
The announcement is: “F45 Training Holdings Inc. (NYSE: FXLV) (“F45” or the “Company”) today announced its intention to voluntarily delist from the New York Stock Exchange (“NYSE”) and to deregister its common stock under Section 12(b) and Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as suspend its reporting obligations under Section 15(d) of the Exchange Act.” OK, so it’s been trading under $1 for some time, meaning that unless it does a reverse stock split - or actually sorts out the business - to raise that stock prie then it will be delisted anyway. But that would usually imply a move to the OTC.
But they seem to be going a stage further than this: “The Company’s continued low trading value, and the resulting low trading price, affects the Company’s ability to raise capital from the public markets, effectively use its securities as transaction consideration or attract interest from institutional investors or market analysts. Despite the lack of these benefits, the Company incurs all of the significant annual expenses and indirect costs associated with being a public company. As a result of going dark, the Company will no longer be obligated to pay these significant expenses and will experience substantial cost savings.” That looks to us that they’re not even going to maintain an OTC listing.
F45 Training Holding stock price from Google Finance
It’s been reasonably obvious for some time now that F45 is likely to go into Chapter 11. Even Mark Wahlberg’s fame can’t support this turkey. Well, OK, that’s sometimes how it is. But a full delisting here means that there absolutely won’t be any value for equity in the event of any reorganisation. So, pretty much, there’s no value in the stock any more.
We can’t see anything here other than sell for whatever can be got and look for something else to do.
