On Oct. 27, the New York Stock Exchange announced in post-market hours that it will move to delistshares of flash storage firm Violin Memory (VMEM).

The exchange also said that it would immediately suspend the company's common stock.

The NYSE said the move to delist VMEM stock is in accordance with Section 802.01B of the NYSE's Listed Company Manual. According to exchange guidelines, company shares can be delisted if the firm falls below the NYSE's continued listing standard regarding its market capitalization. (See also: The Dirt On Delisted Stocks.)

This standard requires a company to maintain an average market capitalization of at least $15 million over a 30-day trading period.

The announcement comes a week after the firm received a notice from the NYSE regarding another violation of its continued listing standard. The exchange’s continued listing standard also requires that a company maintain an average common stock closing price at or above $1.00 per share for at least 30 consecutive days. VMEM stock was last valued at $1.00 per share on Sept. 12, 2016. (See also: What are the rules behind the delisting of a stock?)

The firm said in a statement on Oct. 20 that it planned to meet with the exchange to discuss future efforts to curb its ongoing price decline. (See also: Is Violin Memory on the Verge of Delisting?)

Before shares were suspended on Thursday, shares had dropped by 86.34% over the last three months. In the last 30 days, shares fell 52.74%.

Thursday’s decline pushed Violin Memory’s market capitalization down to $9.51 million. (See also: Is Violin Memory Bankruptcy Bound?)

The company will still have the right to a hearing by a Committee of the Board of Directors of the Exchange. The company may also appeal that decision. Should that appeal be denied, the exchange will file an application to the Securities and Exchange Commission to delist VMEM common stock.

The announcement comes at a difficult time for Violin Memory. Its financial condition has deteriorated over the last four quarters. The firm has aggressively marketed new products to generate buzz for its products. However, its decline has been well noted. The stock's 52-week high was $7.28 per share. The stock closed on Thursday at $0.36 per share just before the delisting announcement. (See also: If a stock is delisted, do shareholders still own the stock?)

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