US coal producer, Rhino Resources, has been notified that it’s shares do not presently satisfy the New York Stock Exchange’s (NYSE) required average closing price of at least US$1/share over any period of 30 consecutive trading days. The company’s share prices has averages US$0.99.
Rhino must now notify the NYSE that it intends to cure the deficiency within ten business days of receipt of the notification. It then has a period of 6 months to regain compliance with minimum share price criteria.
During the 6 month period, Rhino’s shares will continue to listed and traded on the NYSE.
Rhino is just the latest US coal company to fall foul of NYSE listing standards with Alpha Natural Resources was delisted in July after “abnormally low” trading indications of its commons stock, while Peabody Energy and Arch Coal have both undertaken reverse stock splits to maintain their listings.
A reverse stock split effectively reduces the number of shares in a company – and thus raises their value – by combining a multiple of shares into one.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/14102015/rhino-resources-warned-by-nyse-over-low-share-price-3009/