PLYMOUTH, Mich.--(BUSINESS WIRE)--Horizon Global Corporation (NYSE: HZN), one of the world’s leading manufacturers of branded towing and trailering equipment, today announced that on May 1, 2020, it received a letter from the New York Stock Exchange (NYSE) informing the Company of its non-compliance with NYSE continued listing standards because the Company’s average market capitalization over a recent consecutive 30 trading-day period has been less than $50,000,000 and, at the same time, stockholders' equity was less than $50,000,000.
The Company has 45 business days to notify the NYSE of its intent to cure this deficiency and Horizon Global intends to do so on a timely basis. In accordance with NYSE procedures, the Company intends to submit a plan to the NYSE demonstrating how it intends to regain compliance with the continued listing standards on or prior to January 1, 2022 (or such later date as extended by the NYSE in response to the COVID-19 pandemic).
The notice from the NYSE has no immediate impact on the listing of the Company’s common stock, which will continue to trade on the NYSE under the symbol “HZN”, but will be assigned a “.BC” indicator to signify that the Company is not currently in compliance with NYSE continued listing standards. The NYSE notification does not affect Horizon Global’s business operations, its Securities and Exchange Commission reporting requirements, or any of the Company’s material debt agreements.
Horizon Global President and CEO Terry Gohl commented, "The spread of COVID-19 has impacted all facets of our business and the global economy, as a whole, and contributed to a recent decline in our market capitalization. We have and will continue to take aggressive action to mitigate the impact of COVID-19 on our business, with a focus on our liquidity, operations and the health and safety of our workforce. Despite the pandemic, we continue to progress on our operational improvement initiatives and provide best-in-class service to our customers. We look forward to submitting a plan to the NYSE that will outline actions intended to bring Horizon Global back into compliance with the NYSE continued listing standards.”
About Horizon Global
Horizon Global is the #1 designer, manufacturer and distributor of a wide variety of high-quality, custom-engineered towing, trailering, cargo management and other related accessory products in North America and Europe. The Company serves OEMs, retailers, dealer networks and the end consumer as the category leader in the automotive, leisure and agricultural market segments. Horizon provides its customers with outstanding products and services that reflect the Company's commitment to market leadership, innovation and operational excellence. The Company’s mission is to utilize forward-thinking technology to develop and deliver best-in-class products for our customers, engage our employees and create value for our shareholders. Horizon Global is home to some of the world’s most recognized brands in the towing and trailering industry, including: BULLDOG, Draw-Tite, Fulton, Reese, Tekonsha, and Westfalia. Horizon Global has approximately 3,530 employees in 25 facilities across 17 countries. For more information, please visit www.horizonglobal.com.
This release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained herein speak only as of the date they are made and give our current expectations or forecasts of future events. These forward-looking statements can be identified by the use of forward-looking words, such as “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” or other comparable words, or by discussions of strategy that may involve risks and uncertainties. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which could materially affect our business, financial condition or future results including, but not limited to, risks and uncertainties with respect to: the impact of the novel coronavirus (COVID-19) pandemic on the Company’s business, results of operations, financial condition and liquidity; the Company’s ability to regain compliance with the New York Stock Exchange’s continued listing standards; the Company’s leverage; liabilities and restrictions imposed by the Company’s debt instruments; market demand; competitive factors; supply constraints; material and energy costs; technology factors; litigation; government and regulatory actions including the impact of any tariffs, quotas, or surcharges; the Company’s accounting policies; future trends; general economic and currency conditions; various conditions specific to the Company’s business and industry; the success of the Company’s action plan, including the actual amount of savings and timing thereof; the success of the Company’s business improvement initiatives in Europe-Africa, including the amount of savings and timing thereof; the Company’s exposure to product liability claims from customers and end users, and the costs associated therewith; the Company’s ability to meet its covenants in the agreements governing its debt; factors affecting the Company's business that are outside of its control, including natural disasters, pandemics, including the current COVID-19 pandemic, accidents and governmental actions; and other risks that are discussed in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. The risks described herein are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deemed to be immaterial also may materially adversely affect our business, financial position and results of operations or cash flows. We caution readers not to place undue reliance on such statements, which speak only as of the date hereof. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.