Shares of AeroCentury Corp., a company that leases aircraft and engines to regional air carriers, were up more than 1,300% on Monday, after the company said the NYSE American stock exchange has accepted its plan to remain a listed company.
The news propelled a stock ACY, +414.85% that was trading below $3 just last week to $38.04. More than 34.8 million shares had changed hands as of early afternoon, compared with a 65-day daily average trading volume of just 72,410. The stock was temporarily halted for volatility.
Burlingame, Calif.–based AeroCentury said in a regulatory filing it had received a deficiency letter from the NYSE in September, outlining that it was not in compliance with listing standards. The company subsequently submitted a plan to the exchange to bring it back into compliance within 18 months of receiving the initial letter. It then received a letter from the exchange in late November telling it the plan had been accepted with a target completion date of March 11, 2022.
AeroCentury posted a net loss of $4.1 million, or $2.64 a share, in the third quarter, narrower than the loss of $8.2 million, or $5.32 a share, reported in the year-earlier period. The numbers included impairment losses related to the write-down of the fair value of two regional jet aircraft that were held for lease and then sold in October.
The airline industry has been devastated by the coronavirus pandemic, which has grounded craft and deterred many from flying. The U.S. Global Jets ETF JETS, +0.77% has fallen 29% in 2020, while the S&P 500 SPX, +0.87% has gained 16%.
Meanwhile, shares of ATIF Holdings Ltd., a company that said in a July 8 press release that it had acquired a 6.6% stake in AeroCentury, rose 74%.
ATIF acquired 101,367 AeroCentury shares for an average of $2.804 a share, the release stated.