The


New
York
Stock
Exchange
(NYSE)
on
Wednesday

announced
that
the
warrants
of


Finance
of
America,
traded
under
the
ticker
symbol
“FOA.WS,”
will
be
delisted
from
the
exchange
due
to
being
out
of
compliance
with
the
exchange’s
continued
listing
standard.
The
class
A
common
shares
traded
under
the
“FOA”
ticker
symbol,
however,
will
continue
to
be
traded.

“Trading
in
the
warrants
will
be
suspended
immediately,”
NYSE
stated.
“Trading
in
the
Company’s
Class
A
common
stock
—
ticker
symbol
FOA
—
will
continue
on
the
NYSE.”

“NYSE
Regulation
has
determined
that
the
warrants
are
no
longer
suitable
for
listing
based
on
‘abnormally
low
selling
price’
levels,
pursuant
to
Section
802.01D
of
the
Listed
Company
Manual,”
the
NYSE
announced.
“The
company
has
a
right
to
a
review
of
this
determination
by
a
Committee
of
the
Board
of
Directors
of
the
Exchange.

“The
NYSE
will
apply
to
the


Securities
and
Exchange
Commission
(SEC)
to
delist
the
warrants
upon
completion
of
all
applicable
procedures,
including
any
appeal
by
the
company
of
the
NYSE
Regulation
staff’s
decision.”

When
reached,
an
official
with
NYSE
declined
to
comment
beyond
the
scope
of
the
announcement.

Warrants
and
common
stock
operate
differently.
Warrants
act
as
a
kind
of
“coupon”
that
allows
the
holder
to
“buy
or
sell
a
set
number
of
shares
of
a
company’s
stock
at
a
predetermined
price
within
a
specified
timeframe
but
without
any
obligation,”

according
to
information
on
the
topic
published
by


Nasdaq.

A
corporate
executive
with
FOA
explained
to

HousingWire’s
Reverse
Mortgage
Daily
(RMD)
that
this
is
not
expected
to
impact
the
company’s
operations
in
a
tangible
way,
nor
is
it
expected
to
impede
the
progress
of
the
other
measures
FOA
is
taking
to
shore
up
its
class
A
common
share
stock
price.

The
warrants,
the
executive
said,
stem
from
the
time
that
the
company
was

first
preparing
to
go
public
through
a
special
purpose
acquisition
company,
which
has
not
been
a
focus
of
the
company
as
it
is
primarily
focused
on
its
previously
announced
efforts
to
raise
its
share
price.

When
asked
whether
the
move
by
NYSE
would
potentially
lead
to
a
delisting
of
common
shares,
the
executive
indicated
that
there
was
no
immediate
concern
of
a
material
impact
for
the
class
A
shares.

The
reality
of
this
move
was
described
as
“matter
of
fact,”
the
executive
said,
and
the
company
will
continue
pressing
forward
to
both
improve
its
stock
price
and
offer
its
products
for
senior
borrowers.

In
mid-June,
an
FOA
filing
with
the
SEC
indicating
that
the
company
was
preparing
to

perform
a
reverse
stock
split
at
a
10-to-1
ratio
in
a
move
designed
to
boost
the
company’s
stock
price.

FOA
first
received
word
from
the
NYSE
that
it
was
out
of
compliance
with
its
continued
listing
standard
in

December
2023,
with
a
second
notice
issued
in

February
2024.
NYSE
requires
that
listed
stocks
maintain
a
price
of
at
least
$1
per
share
“over
a
consecutive
30
trading-day
period,”
but
the
price
has
reached
that
threshold
only
eight
times
in
2024.
At
the
end
of
trading
on
Wednesday,
the
share
price

stood
at
$0.47.

Following
the
announcement
of
the
reverse
stock
split,
FOA
said
it
would

restructure
its
unsecured
debt
into
new,
secured
debt
that
will
come
due
beyond
the
original
2025
maturity
date.
The
company
and
noteholders
agreed
to
“an
exchange
of
any
and
all
of
the
outstanding
2025
unsecured
notes”
into
two
new
secured
tranches.

The
first
is
for
up
to
$200
million
in
aggregate
principal
of
senior
secured
first-lien
notes
due
in
2026
(with
an
option
to
extend
it
to
2027
if
the
company
elects
to
do
so),
while
the
second
is
for
up
to
$150
million
in
aggregate
principal
of
exchangeable
senior
first-lien
notes
due
in
2029.

But
the
company
has
also
recently
endured
other
challenges,
including

a
round
of
layoffs
and
the
corresponding,
voluntary
departure
of
its
chief
retail
sales
officer.
It
was
not
specified
how
many
employees
nor
which
specific
divisions
were
impacted.

According
to
Home
Equity
Conversion
Mortgage
(HECM)

endorsement
data
compiled
by


Reverse
Market
Insight
(RMI),
FOA
is
the
leading
reverse
mortgage
industry
lender
in
the
country
with
7,566
endorsements
in
the
12-month
period
ending
in
June
2024.

Data
from


New
View
Advisors
also
shows
that
FOA
is
the
leading
HECM-backed
Securities
(HMBS)
issuer,
with
31.9%
of
the
overall
market
based
on
the
first
six
months
of
the
year.

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