The New York Stock Exchange has started the process to delist AAC Holdings, Inc. (NYSE: AAC), the parent company of American Addiction Centers.
The news comes after the NYSE suspended trading on the stock just a few days earlier.
Both moves are a consequence of AAC falling below the NYSE’s continued listing standard. It requires companies on the exchange to have an average global market capitalization of at least $15 million over a consecutive 30 trading day period, according to a NYSE press release announcing the news.
When the market closed Friday, AAC had a market capitalization of only $12.1 million, according to the Nashville Business Journal.
Brentwood, Tennessee-based AAC is one of the nation’s largest addiction treatment providers. It has 11 inpatient facilities, 24 outpatient centers and four sober-living residences nationwide.
The company first went public in 2014. Since then, the way addiction treatment is paid for has seen a slew of changed — and AAC has struggled.
In 2019 alone, AAC lost its president, COO and four members of the company’s board of directors. All of them resigned. On top of that, AAC is in default on a $30 million loan and has been getting delisting warnings from NYSE for months, the Nashville Business Journal reported.
A company spokesperson told the Tennessee publication that the company will move to an over-the-counter market and will continue trading as a public company.
AAC Holdings is set to host its third quarter earnings call Nov. 7.