US coal company, Rhino Resource Partners, has announced it intention to list its common units on the OTCQB Marketplace following a notice from the New York Stock Exchange (NYSE) in October warning that company that is no longer met the NYSE’s standards for continued listing.
Rhino fell afoul of the NYSE requirement that the average closing price of the common units to be at least US$1 over any period of 30 consecutive trading days. The company’s market capitalisation also recently fell below US$15 million, which – if continued over a period of 30 consecutive trading days – would result in immediate delisting.
“After considering the available options to continue compliance with the NYSE’s listing standards and the costs associated with Rhino’s continued listing on the NYSE, the partnership determined that continued listing on the NYSE is not in the best interest of the patnership and its unit holders,” the company said in a statement.
Rhino’s common units will begin trading on the OTCQB Marketplace around 4 January – unless the NYSE delists the company before that date. In which case, trading of the common units on the OTCQB coul begin earlier.
Rhino joins a growing number of US coal companies struggling to maintain their NYSE listings. Last week, Arch Coal announced that it was in breach of NYSE listings standards after its average market capitalisation fell below US$50 million for more than 30 trading days and its stockholders' equity was below US$50 million in its most recent 10-Q filed with the Securities and Exchange Commission.
Rhino Resource Partners produces both metallurgical and thermal coal in central and northern Appalachia, the Illinois Basin and in the western coalfields of Utah and Colorado. In 3Q15, the company announced losses of US$9.3 million on revenues of US$54.1 million and said it was idling most of its central Appalachian operations because of competition from low-cost natural gas.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/14122015/rhino-resource-to-delist-from-nyse-3285/