ATI Physical Therapy Faces NYSE Delisting as Company Seeks New Financing

ATI Physical Therapy Faces NYSE Delisting

In a significant development, ATI Physical Therapy, Inc. (NYSE: ATIP), a prominent outpatient physical therapy provider in the United States, has announced that it has received a notification from the New York Stock Exchange (NYSE) about the impending delisting of its Class A common stock. This notice indicates that trading of ATI's shares will cease on the NYSE after the market closes on December 3, 2024.

The decision to delist was based on a lack of compliance with the NYSE's requirement that companies maintain a minimum average global market capitalization of $15 million over a period of 30 consecutive trading days. The company is shifting its trading to the OTC Pink® Market, which is less restrictive than traditional exchanges, but this transition has raised concerns among shareholders and investors alike.

ATI Physical Therapy, headquartered in Bolingbrook, Illinois, operates over 850 locations across 24 states, specializing in musculoskeletal (MSK) health. Despite this setback, ATI plans to continue its operations without disruptions to its business, partnerships, or employee relations. The leadership remains optimistic; Sharon Vitti, the CEO, expressed confidence in the company’s strategic goals, emphasizing ongoing investments in both staff and patient care.

Joe Jordan, the CFO, further reassured investors that the company is actively pursuing interim financing strategies to provide liquidity. This financial maneuver is crucial to ensure that common stockholders have access to their investments and to stabilize the company’s capital structure moving forward.

Over the past year, ATI has worked diligently to enhance its operational efficiency and overall positioning in the market. They aim to deliver quality services through standardized practices, evidenced by managing over 3 million unique patient cases. The company emphasizes its commitment to fostering an active lifestyle for its patients through quality care and innovative service offerings.

While the delisting has raised several red flags regarding the company's financial health, it also represents an opportunity for ATI to explore alternative markets that may better suit its operational scale and financial strategy. The over-the-counter market could potentially offer the flexibility ATI requires during this transitional period.

However, the company remains vigilant about navigating the complexities that come with this market change. The management is attentive to ongoing dialogues regarding financing provisions that could potentially solidify its operational framework and restore investor confidence.

Despite these challenges, ATI Physical Therapy reassures that its commitment to high standards in patient care and operational excellence remains undeterred. They have employed robust strategies to enhance service delivery, which include preventive healthcare initiatives in various settings like workplaces and sports training, along with their innovative online platform, CONNECT™, aimed at providing comprehensive online physiotherapy services.

Looking ahead, the leadership has acknowledged that while the delisting from the NYSE may alter the company's market visibility and investor sentiment, it is not expected to hinder ATI's long-term vision or business goals. The executive team is poised to tackle the upcoming strategic challenges and opportunities in order to safeguard the interests of their stakeholders, making every effort to ensure the company's success in a competitive landscape.

Moving forward, shareholders and market watchers will be closely monitoring ATI’s transition to the OTC Pink® Market and the outcomes of its financing discussions, as these factors will undoubtedly play a pivotal role in shaping the company's future and operational resilience.

ATI Physical Therapy continues to stand firm on its mission of making every life an active life, reflecting their dedication not just to business growth but also to the well-being of their patients.