Nasdaq issues OceanFreight warning.
Greece based dry bulk and tanker owner OceanFreight is looking at options to boost its share price after being warned by the Nasdaq stock market for breaching requirements on stock price levels, writes Nigel Lowry in Athens.
The Anthony Kandylidis-led company received written notification from Nasdaq at the start of this month that it had fallen out of compliance after the closing bid price had hovered below the minimum $1 threshold for the previous 30 consecutive business days. Companies in this predicament generally have a 180-day grace period to regain compliance. ?This notification has no effect on the listing of the company"s common stock at this time,? said OceanFreight.
?The company intends to monitor the closing bid price of its common stock between now and August 30, 2010, and is considering its options in order to regain compliance with the Nasdaq minimum bid price requirement.?
OceanFreight is owner and operator of a fleet of 13 vessels of an aggregate 1.4m dwt.
It is the second Nasdaq-listed shipping company in less than a month to receive such a notice. Fellow Greek-run tanker and dry bulk operation NewLead Holdings was told on February 8 that it had fallen foul of the 30 consecutive days rule.
Compliance with the minimum bid price requirement can be regained by maintaining a closing bid price at or above $1 per share for at least 10 consecutive business days.
After the 180-day period expires, a company could be eligible for an additional grace period if it can demonstrate compliance with all the initial standards for a Nasdaq listing with the exception of the minimum bid price.