NYSE Issues Warning to Volato Over Securities Violations
Compliance Concerns
Volato (SOAR) has received a warning letter from the New York Stock Exchange (NYSE) citing non-compliance with certain listing standards. The letter, issued under Section 1009(a) of the NYSE company guide, highlights the company’s failure to adhere to Sections 301 and 713 of the guide.
Securities Listing Requirements
Section 301 prohibits listed companies from issuing additional securities without prior approval from the NYSE American. Meanwhile, Section 713 mandates stockholder approval for transactions involving the sale or issuance of common stock exceeding 20% of outstanding shares at a price below book or market value.
Violation Details
Between November and December 2024, Volato issued approximately 16 million shares of Class A common stock as part of a settlement agreement. The NYSE has deemed this issuance a violation of the aforementioned provisions.
Corrective Actions
To prevent future violations, Volato is implementing additional controls to ensure compliance with NYSE rules. The company has been informed by the NYSE that this matter will be resolved upon filing a press release and associated Form 8-K.
Moving Forward
Volato is taking steps to rectify the situation and avoid similar issues in the future. With the implementation of new controls, the company aims to maintain a strong compliance framework and uphold the trust of its stakeholders.
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