Miami-based primary care provider Cano Health said it is accelerating its transformation plan after being hit with a New York Stock Exchange delisting warning.
The NYSE issued a warning that the company was out of compliance because its total market capitalization had been less than $50 million over a 30-day trading period and its stockholders' equity was less than $50 million, according to a Dec. 29 news release.
Cano has 45 days to submit a plan on how it will regain compliance within 18 months, according to the release. If the NYSE accepts the plan, Cano will be subject to ongoing quarterly monitoring for compliance with the plan. During the 18-month period, the stock will remain eligible for continued listing and trading. If the NYSE does not accept the plan, Cano could be subject to suspension and delisting proceedings.
Cano's transformation plan includes driving initiatives to improve its medical cost ratio; taking measures to reduce operations expenses, including slimming its permanent staff; prioritizing Medicare Advantage and ACO Reach businesses; and pursuing a "comprehensive process to identify and evaluate interest in a sale of the company, or all or substantially all of its assets."
The company said it is targeting $290 million in cost reductions by the end of 2024.