Paragon Offshore, a provider of offshore drilling rigs to the oil and gas industry, today announced that it had received a letter from The New York Stock Exchange (the NYSE) notifying it that, for 30 consecutive trading days, the price for Paragon’s common shares was below the minimum $1.00 per share requirement for continued listing on the NYSE.
Paragon says that this notice does not have an immediate effect on the listing of its common shares, and its common shares will continue to trade on the NYSE under the symbol “PGN.”
According to its press release, Paragon has 180 days, or until February 8, 2016, to regain compliance with the NYSE’s minimum share price requirement. Paragon can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period Paragon’s common shares have a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of such month.
Notwithstanding the foregoing, if Paragon determines that it must cure the price condition by taking an action that will require approval of its shareholders, Paragon may also regain compliance by: obtaining the requisite shareholder approval by no later than Paragon’s next annual meeting, and implementing the action promptly thereafter; provided that the price of Paragon’s common shares promptly exceeds $1.00 per share, and the price remains above the level for at least the following 30 trading days, the company explained in the press release.
Furthermore, in the event Paragon receives notice that its common shares are being delisted, the NYSE’s rules permit Paragon to appeal any delisting determination by the NYSE’s staff to a hearings panel.
Paragon said it intends to maintain the listing of its common shares on the NYSE and will consider all available options to regain compliance with the NYSE’s continued listing standards.