GulfMark Offshore, an offshore support vessel provider, has received a continued listing standard notice by the New York Stock Exchange (NYSE).
The company was notified on March 27, 2017, by the NYSE that the trading price of its Class A common stock is not in compliance with the exchange’s continued listing standard, which requires a minimum average closing price of $1.00 per share over a period of 30 consecutive trading days.
As required by the NYSE, the company plans to notify the NYSE, within 10 business days of receipt of such notice, regarding its intent to cure this deficiency or be subject to the NYSE’s suspension and delisting procedures.
In addition, under the NYSE’s rules, the NYSE will promptly initiate suspension and delisting procedures with respect to the company if the NYSE determines that the company has average global market capitalization over a consecutive 30 trading-day period of less than $15 million.
GulfMark said that its global market capitalization is currently significantly less than $15 million, and has been since March 15, 2017. Accordingly, the company may be subject to suspension and delisting under this NYSE standard.
To remind, the company on March 15 decided not to pay on its due date the $13.7 million interest payment on its 6.375% senior notes due 2022 thereby entering a 30-day grace period to make the payment. If the payment is not made after that period, that would constitute a default.
GulfMark also added that, if the company is suspended from trading pending delisting, it is anticipated that the common stock would be quoted in the “Pink Sheets” of the OTC Markets Group, Inc.