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 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 Thornburg 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.
(photo: bensisto)
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