Will the NYSE delist the stock if the price remains below $1, and what are the immediate consequences?

Will the NYSE delist the stock if the price remains below $1?

Yes. Under NYSE Listing Rule 210.20A, a security that fails to maintain a 30‑day average closing price of at least $1.00 is placed on a Deficiency Notice and given a 30‑trading‑day cure period. If the average remains below the threshold after that window, the NYSE will formally delist the shares and the ticker will be moved to the over‑the‑counter (OTC) “pink” market unless the company successfully appeals or satisfies an alternative compliance test (e.g., market‑cap, cash flow, or shareholders‑equity criteria). The notice you received on Aug 27, 2025 signals that the clock has started; if ENFY cannot lift the price average by the deadline (typically late‑September), delisting is essentially automatic.

Immediate consequences and actionable trading implications

1. Liquidity & volatility spike – Once a delist notice is filed, market makers often widen bid‑ask spreads and trading volume contracts sharply. Expect heightened price swings and potential “price‑floor” buying from short sellers covering positions.

2. Regulatory‐driven price pressure – Many institutional funds are prohibited from holding securities that are not listed on a major exchange; they may be forced to liquidate, adding downward pressure. Conversely, opportunistic traders may take short positions anticipating a rapid decline, but must watch for a possible “pop‑back” if the company announces a successful appeal or a reverse‑stock‑split.

3. Strategic response –

- If you are long: Consider reducing exposure or hedging with puts or inverse ETFs, especially if the 30‑day average is still trending lower. Monitor ENFY’s corporate actions (e.g., a planned stock‑split, capital raise, or acquisition) that could restore compliance.

- If you are short or neutral: The delisting process can create a short‑squeeze risk if the company announces a reverse split or a capital infusion that temporarily pushes the price above $1. Keep stop‑loss orders tight and be ready to unwind positions quickly.

4. Fundamental angle – The price weakness reflects underlying concerns (likely weak cash flow, deteriorating market position, or dilution from recent financing). Scrutinize ENFY’s latest earnings, cash‑burn rate, and any pending financing commitments. If fundamentals are irredeemable, the delisting is a symptom rather than the cause, and a continued decline is probable.

Bottom line: The NYSE will delist ENFY if the 30‑day average stays below $1, and the immediate fallout will be reduced liquidity, widened spreads, and forced selling by institutions. Traders should either protect long positions or consider short/hedge strategies, while staying alert for any corporate‑action catalyst that could temporarily reverse the trajectory.