Highly beleaguered healthcare stock Cano Health (NYSE: CANO) was hit with some bad news it probably didn't need on Tuesday, and investors sold out of the company. Late on Monday, Cano Health disclosed in a regulatory filing that it has received formal notice from the New York Stock Exchange (NYSE) that it is in violation of the exchange's trading rules. As per the NYSE's regulations, Cano Health now has six months to regain compliance with the 30-day, $1 rule.
The Dow Jones Industrial Average (DJINDICES: ^DJI) stretched to a modest gain, but declines for the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) showed the ambivalence among investors about what the next couple of months will bring. Both Arco Platform (NASDAQ: ARCE) and Cano Health (NYSE: CANO) are looking to take dramatic action to improve the chances of success for their respective businesses.
The steep sell-off came after the primary care provider and population health company provided its second-quarter update following the market close on Thursday. In that update, Cano Health stated that its management team "has concluded that there is substantial doubt about the company's ability to continue as a going concern within one year." Cano Health announced that it will try to sell the company.