Drive Shack (NYSE:DS) stock is falling hard on Wednesday after the company warned investors of it delisting shares.
According to a press release, Drive Shack intends to delist its shares from the New York Stock Exchange on or before Dec. 23. That means there’s only a little over a week before the stock stops trading on the exchange, which explains the drop in price today.
Drive Shack’s decision to delist shares comes after the company received a warning from the NYSE. The low price of DS stock, as well as its low trading volume, leave it unfit to remain on the exchange.
What’s Next for DS Stock?
Rather than try to fight the delisting, Drive Shack is embracing the news. The company will instead list its shares with OTC Markets Group. It’s expecting to receive approval for this listing in the first quarter of 2023.
Drive Shack argues that this is the better decision for the company. Management believes that spending less time dealing with U.S. Securities and Exchange Commission (SEC) listing policies and focusing more on the business will be better in the long run.
With today’s news comes heavy trading of DS stock as investors unload shares. As of this writing, more than 15 million shares are on the move. That’s a massive increase over the daily average trading volume of only about 700,000 shares.
DS stock is down 57.9% as of Wednesday afternoon.
Investors seeking more of the most recent stock market news will want to stick around!
InvestorPlace is home to all of the hottest stock market coverage for Wednesday! That includes what’s going on with shares of SoFi Technologies (NASDAQ:SOFI), Crown Electrokinetics (NASDAQ:CRKN) and Kymera Therapeutics (NASDAQ:KYMR) stock today. You can read up on that news at the links below!
More Wednesday Stock Market News
- Why Is SOFI Stock Up 7% Today?
- Dear CRKN Stock Fans, Mark Your Calendars for Dec. 22
- Why Is Kymera Therapeutics (KYMR) Stock Up 20% Today?
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
