What steps is American Strategic Investment Co. taking to regain compliance with the $50 million market‑cap requirement, and what is the timeline?
Steps the company is taking
American Strategic Investment Co. ( NYC ) has publicly acknowledged the NYSE notice and, in its filing, said it will immediately begin a capital‑raising plan to lift its 30‑day average market‑capitalization back above the $50 million threshold. The Company is preparing a secondary equity offering (or, if market conditions warrant, a reverse stock‑split) that will place additional shares in the market and increase the aggregate market‑cap. It is also accelerating outreach to existing shareholders and strategic partners to secure fiduciary‑level support for the issuance, which should boost both the share count and the trading volume. Management has indicated that it will file an Form 8‑K outlining the exact timing of the offering and any related covenants, and will work with its underwriters to price the transaction at a level that maximizes proceeds while limiting dilution.
Timeline for compliance
The NYSE’s Section 802.01B gives a company 90 calendar days from receipt of a continued‑listing notice to demonstrate compliance. Because the market‑cap test is based on a rolling 30‑trading‑day average, the Company must have the new capital in place and the share price stable enough to clear the $50 million bar by the end of the 90‑day window, i.e., roughly early November 2025. The secondary‑offering is expected to be priced and closed within 30‑45 days of the notice, giving the Company a clear path to re‑meet the NYSE threshold well before the final deadline.
Trading implications
Until the capital‑raise closes, the stock is likely to trade on heightened volatility and could see down‑side pressure as investors price in the risk of a potential delisting. A successful offering that restores market‑cap compliance would trigger a short‑cover rally and could bring the share price back toward its pre‑notice levels, offering a buying opportunity for risk‑tolerant traders. Monitor the Company’s 8‑K filing and any pricing announcement; once the deal is confirmed, expect a sharp bounce and a tightening of the bid‑ask spread as liquidity improves. Conversely, any delays or failure to secure the needed proceeds would sharpen the downside risk and may prompt a pre‑emptive exit or a defensive stop‑loss placement.