Thornburg Mortgage announced today that it needed even more time to complete its form 10-Q for the first quarter, which was expected to be released today after an initial delay.
The company now intends to release the report and hold a related conference call on June 12, blaming the lapse on the lengthy valuation analysis of its senior subordinated notes issued to raise capital after facing a series of debilitating margin calls.
As a result, Thornburg has been unable to file the registration of the notes and has requested a 90 day extension until September 30, anticipating that the SEC will require the exchange to remain open for a certain period of time for appropriate review.
Unrelated to these particular events, the jumbo mortgage and adjustable-rate mortgage lender also said it received a letter from the NYSE on May 29, notifying the company that it was out of compliance because its share price had fallen below $1.00 for 30 consecutive trading days.
The company was told that in order to gain compliance, the stock will need to regain its $1.00 share price and average a $1.00 share price for 30 consecutive trading days within six months.
Thornburg has already decided to execute a reverse stock split to solve the problem, and has notified the NYSE of its intent, although no further details were released.
Shares of the Santa Fe, New Mexico-based mortgage lender closed the day up six cents, or 7.59%, to 85 cents, but slid 12 cents, or 14.12%, to 73 cents in after hours trading.