WeWork Faces Warrants Delisting After Hitting ‘Abnormally Low’ Price Levels

WeWork says it expects its warrants to be delisted from the New York Stock Exchange (NYSE).

The troubled co-working company announced Tuesday (Aug. 22) that the trading on the company’s warrants would be halted after the NYSE determined they had reached “abnormally low” prices.

“The Company has a right to a review of this determination by a Committee of the Board of Directors of the Exchange,” WeWork said in a news release. “The NYSE will apply to the Securities and Exchange Commission to delist the Warrants upon completion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision.”

WeWork’s Class A common stock will continue to list on the NYSE, the release said.

The news comes two weeks after WeWork — which provides shared workspaces for technology startups and other businesses — warned in a Securities and Exchange Commission (SEC) filing that it had doubts about its future as a “going concern.”

“If we are not successful in improving our liquidity position and the profitability of our operations, we may need to consider all strategic alternatives, including restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying our business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code,” the company said.

WeWork went public in 2021 through a merger with special purpose acquisition company (SPAC) BowX Acquisition Corp. The company had made an aborted attempt to go public two years earlier.

“One might argue that a SPAC deal tempers the enthusiasm WeWork once might have commanded. Back when it was slated to go public in the summer of 2019, the anticipated market cap was north of $40 billion,” PYMNTS wrote at the time.

“A recently reported SPAC valuation of around $8 billion implies at least some (relative) caution about office space, and the way work from home as hybrid-employment approaches may change the way we view commercial real estate, even if it is underpinned by on-demand models and apps and flex-space,” PYMNTS said.

Now, with the commercial real-estate sector struggling, WeWork is in a far more precarious place, with its stock down 92% in the past year.