Paragon Offshore, a driller operating a fleet of jack-up rigs, has received a letter from The New York Stock Exchange (the “NYSE”) notifying Paragon that it had fallen below the NYSE’s continued listing standard.
The letter is related to a standard that requires listed companies to have a minimum average market capitalization greater than $50 million over a 30 trading-day period and total stockholders’ equity greater than $50 million.
Paragon has been given 45 days to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the NYSE’s continuing listing standards on or before June 2, 2017. The driller said it intended to submit a Plan to the NYSE within the required timeframe.
If the NYSE accepts the Plan, Paragon’s shares will continue to trade on the NYSE and Paragon will be subject to quarterly monitoring by the NYSE for compliance with the Plan. If the NYSE rejects the Plan, however, the NYSE will initiate procedures to delist Paragon’s shares from the NYSE.
Paragon has said that, if the NYSE rejects Paragon’s Plan, Paragon intends to seek the transfer to an alternate exchange or trading market.
As previously reported on August 8, 2015, Paragon received a notice from the NYSE that it was not in compliance with another of the NYSE’s continued listing standards as the Company did not maintain an average closing price of greater than $1.00 over 30 consecutive trading days.
Paragon has 180 days, or until February 8, 2016, to regain compliance with the NYSE’s minimum share price requirement.