HighPoint Gets NYSE Non-Compliance Notice

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HighPoint Resources Corporation announced that on November 4, 2020, it received notice from the New York Stock Exchange (NYSE) that it is no longer in compliance with the NYSE continued listing standards set forth in Section 802.01B of the NYSE’s Listed Company Manual due to the fact that the Company’s average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its stockholders’ equity was less than $50 million. As set forth in the Notice, as of November 4, 2020, the 30 trading-day average global market capitalization of the Company was approximately $41.5 million and the Company’s last reported stockholders’ equity as of September 30, 2020 was a deficit of $12.6 million.

In accordance with NYSE procedures, the Company has notified the NYSE that it plans to submit a plan within 45 days of receipt of the Notice advising the NYSE of definitive action it has taken, or is taking, to bring it into compliance with Section 802.01B within 18 months of receipt of the Notice.

Also, on November 10, 2020, Moody's Investors Service downgraded the Company’s corporate family rating to Ca from Caa2, its probability of default rating to C-PD from Caa2-PD and its senior unsecured notes ratings to C from Caa3. "The downgrade of HighPoint's ratings reflect high risk of default, either as a result of our deeming the company's planned bond exchange a distressed exchange if completed out of court or the company filing a plan of reorganization under Chapter 11," according to the ratings agency.

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