Exhibit
99.1
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Yuma Energy, Inc.
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NEWS
RELEASE
Yuma Energy, Inc. Receives Noncompliance Notice from NYSE
American
HOUSTON, TX – (PR Newswire – June 20, 2019) –
Yuma Energy, Inc. (NYSE American: YUMA)
(“Yuma,” the “Company,” “we” or
“our”) today announced that on June 17, 2019, Yuma was
notified by the NYSE American LLC (the "Exchange") that the Company
is not in compliance with one of the Exchange's continued listing
standards as set forth in Part 10 of the NYSE American Company
Guide (the "Company Guide").
Specifically,
Yuma is not in compliance with Section 1003(a)(iii) of the Company
Guide in that it has reported a stockholders’ equity of less
than $6 million as of March 31, 2019 and reported losses from
continuing operations and/or net losses in its five most recent
fiscal years.
The
notice is based on a review by the Exchange of information that the
Company has publicly disclosed, including information contained in
the Company's Quarterly Report on Form 10-Q, filed with the
Securities and Exchange Commission (the “SEC”) on May
20, 2019, which included the interim consolidated financial
statements for the three month period ended March 31,
2019.
In
order to maintain its listing on the Exchange, the Company was
requested to submit a plan of compliance (the "Plan") by July 17,
2019 addressing how it intends to regain compliance with Section
1003(a)(iii) of the Company Guide by December 17, 2020. Yuma
intends to fully comply with the Exchange’s requests and will
submit its Plan accordingly.
In
addition, as previously
reported, the Company received a notification from the
Exchange indicating the
Company’s common stock has been selling for a low price per
share for a substantial period of time, and the Company must
demonstrate an improved share price or effect a reverse stock split
of its common stock by no later than July 4, 2019, in order to
maintain the listing of the Company’s common stock on the
Exchange. On June 12, 2019, the Company’s stockholders voted
to approve a potential amendment to the Company’s amended and
restated certificate of incorporation to effect a reverse split of
the Company’s common stock, as determined by the Board of
Directors at its sole discretion, of a ratio of not less than
one-for-ten and not more than one-for-twenty-five. Additionally,
the Company could be subject to immediate de-listing should the
stock price decline to $0.06 per share.
The
Exchange notification of continued listing deficiency does not
affect the Company’s business operations or its SEC reporting
obligations. Yuma's management previously recognized the need to
engage in financing transactions or other strategic alternatives to
address the Company's financial requirements and has publicly
announced those initiatives. Yuma is actively exploring
restructuring the Company’s credit facility through a
third-party desiring to acquire the facility or combining with or
acquiring companies or assets to create a larger company with
greater operating leverage. The Company continues to work with
Seaport Global Securities LLC, an investment banking firm, to
advise the Company on various strategic alternatives; however,
there is no assurance that any transaction or restructuring
alternative will materialize.
Receipt
of the notice from the Exchange does not have any immediate effect
on the listing of the Company's shares of common stock on the
Exchange, except that until the Company regains compliance with the
Exchange's listing standards, a ".BC" indicator will be affixed to
the Company's trading symbol. The Company's business operations and
SEC reporting requirements are unaffected by the notification,
provided that if the Plan is not acceptable, or the Company does
not make sufficient progress under the Plan or reestablish
compliance by December 17, 2020, then the Company will be subject
to the Exchange's delisting procedures. The Company may then appeal
a staff determination to initiate such proceedings in accordance
with the Company Guide.
About Yuma Energy, Inc.
Yuma
Energy, Inc., a Delaware corporation, is an independent
Houston-based exploration and production company focused on
acquiring, developing and exploring for conventional and
unconventional oil and natural gas resources. Historically, the
Company’s activities have focused on inland and onshore
properties, primarily located in central and southern Louisiana and
southeastern Texas. Its common stock is listed on the NYSE American
under the trading symbol “YUMA.”
Forward-Looking Statements
This
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).
Any and all statements that are not strictly historical statements
constitute forward-looking statements and may often, but not
always, be identified by the use of such words such as
“expects,” “believes,”
“intends,” “anticipates,”
“plans,” “estimates,”
“potential,” “possible,” or
“probable” or statements that certain actions, events
or results “may,” “will,”
“should,” or “could” be taken, occur or be
achieved. The Company’s annual report on Form 10-K for the
year ended December 31, 2018, quarterly reports on Form 10-Q,
recent current reports on Form 8-K, and other SEC filings discuss
some of the important risk factors identified that may affect its
business, results of operations, and financial condition. The
Company undertakes no obligation to revise or update publicly any
forward-looking statements, except as required by law.
For more information, please contact
Carol
Coale
Managing
Director
Dennard
Lascar Investor Relations
713-529-6600