Verso Corporation (NYSE: VRS) announced today that it has submitted to the New York Stock Exchange a business plan to demonstrate Verso's ability to achieve compliance with the NYSE's continued listing standard requiring that Verso's average market capitalization be at least $50 million over a period of 30 consecutive trading days. As previously disclosed, on August 13, 2015, the NYSE notified Verso that it had fallen below the NYSE's average market capitalization continued listing standard. Under the NYSE's rules, Verso is allowed to submit to the NYSE a plan to demonstrate Verso's ability to achieve compliance with the average market capitalization standard within 18 months after the notification date, i.e., by February 13, 2017. Verso submitted its listing compliance plan to the NYSE earlier this morning.
Over the past year, we have seen a significant deterioration in the price of newsprint. We now believe that conditions have sufficiently improved to begin the process of recovery.
Accordingly, we are announcing today a newsprint price increase of $40/metric tonne (for 48.8 gsm). The increase will be phased in beginning with a $20/metric tonne hike effective with shipments on or after January 1, 2016 followed by a second increase of $20/metric tonne effective with shipments on or after February 1, 2016. Other basis weights will be adjusted as per past practices.
Please note that this price increase is independent of the recent price increase announcement from Ponderay Newsprint Company.