Paragon Shipping has announced that it has received a notification from The NASDAQ Stock Market, indicating that because the company’s stockholders’ equity as of December 31, 2015 was below $2,500,000, the company no longer meets the minimum stockholders’ equity requirement for the NASDAQ Capital Market.
According to the NASDAQ listing rules, the company has 45 calendar days to submit a plan to regain compliance.
The company has voluntarily determined to move the listing of its common stock from the NASDAQ Capital Market to the OTC Markets’ OTCQB Venture Market. The company expects to commence trading on the OTC Markets on June 6.
Paragon Shipping said the decision was made following the detailed review of numerous factors and the board’s determination that the company is unlikely to regain compliance with the minimum stockholders’ equity requirement within the time frames required by NASDAQ.
In the meantime, Paragon Shipping said it received a notice of default from Yangzhou Dayang Shipbuilding yesterday for not taking delivery of an ultramax newbuilding drybulk carrier.