U.S.-based offshore support vessel owner GulfMark Offshore has been delisted from the New York Stock Exchange (the NYSE) and started trading in the Pink Sheets.
The company in late March had received a notice from the NYSE that the trading price of its Class A common stock was not in compliance with the exchange’s continued listing standard giving the company a deadline of ten business days to cure the deficiency or face the NYSE’s suspension and delisting.
On April 10, 2017, GulfMark Offshore was notified by the NYSE that the stock exchange has determined to start proceedings to delist the company’s Class A common stock, par value $0.01 per share, from the NYSE because the average closing price per share of the common stock over a period of 30 consecutive trading days was below $1.00 per share, which is the minimum average closing price required to maintain listing on the NYSE.
The company advised the NYSE that it does not intend to cure such deficiency. Trading in the common stock on the NYSE was suspended after the close of trading on April 10, 2017.
Effective April 11, 2017, the company’s common stock started trading in the “Pink Sheets” of the OTC Markets Group under the symbol “GLFM.” The OTC Pink is a significantly more limited market than the NYSE, and quotation on the OTC Pink may result in a less liquid market available for existing and potential stockholders to trade the common stock and could further depress the trading price of the common stock, GulfMark said on Wednesday.
Furthermore, the company added that there can be no assurance that its common stock will continue to trade on OTC Pink, or that the company will be able to relist its common stock on a national securities exchange.
Last month, GulfMark revealed it was facing a default on its $13.7 million interest payment, due on its 6.375% senior notes due 2022, after not making the payment on time. With this, the company entered into a 30-day grace period, which ends in mid-April, to make the payment. If the company does not make the payment it would constitute a default.
Offshore Energy Today Staff