Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On August 10, 2020, Centennial Resource Development, Inc. (the "Company")
received written notification (the "Notice") from the Listing Qualifications
Department of the Nasdaq Stock Market LLC ("Nasdaq") indicating that, for the
last thirty consecutive business days, the bid price for the Company's Class A
Common Stock, par value $0.0001 per share (the "Common Stock"), had closed below
the minimum $1.00 per share requirement for continued listing on the Nasdaq
Capital Market under Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid
Requirement").
The Notice has no immediate effect on the listing or trading of the Common Stock
on the Nasdaq Capital Market. In accordance with Nasdaq Listing Rule
5810(c)(3)(A), the Company was provided an initial period of 180 calendar days,
or until February 8, 2021, to regain compliance.
If the Company does not regain compliance with the Minimum Bid Requirement by
February 8, 2021, the Company may be eligible for an additional 180 calendar day
compliance period. To qualify, the Company would be required to meet the
continued listing requirement for market value of publicly held shares and all
other initial listing standards for the Nasdaq Capital Market, with the
exception of the bid price requirement, and would need to provide written notice
of its intention to cure the deficiency during the second compliance period.
However, if it appears to the Nasdaq staff that the Company will not be able to
cure the deficiency, or if the Company does not meet the other listing
standards, Nasdaq could provide notice that the Common Stock will become subject
to delisting. In the event the Company receives notice that the Common Stock is
being delisted, Nasdaq rules permit the Company to appeal any delisting
determination by the Nasdaq staff to a Hearings Panel.
The Company intends to actively monitor the closing bid price of its Common
Stock and will evaluate available options to regain compliance with the Minimum
Bid Requirement. There can be no assurance that the Company will be able to
regain compliance with the Minimum Bid Requirement or maintain compliance with
the other listing requirements of the Nasdaq Capital Market.
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