DryShips has transferred its public listing to the Nasdaq Capital Market from the Nasdaq Global Select Market after failing to achieve a share price of over $1.00 per share for more than 30 consecutive business days.
The Economou-led company began trading its stock on the new market this morning.
DryShips received a notification from Nasdaq on April 13 that the company must meet the Nasdaq Global Select Market’s minimum bid price requirement of $1.00 per share by October 12, or it would fail to be in compliance with the market’s listing rules.
The Athens-based company today began a new 180-day grace period on the Nasdaq Capital Market, during which its stock must meet the minimum bid price of at least $1.00 per share for over 10 consecutive business days in order to regain compliance.
If DryShips cannot meet the minimum price requirement by the end of the grace period (April 11, 2016), the company will delisted by Nasdaq.
“The company has provided written notice of its intention to cure the minimum bid price deficiency during the second grace period by effecting a reverse stock split, if necessary,” DryShips said in a statement today.
DryShips’ stock has lost 85.81% of its value over the past 52-week period. At the time of writing, the stock is trading at $0.218 per share, a slight increase on its 52-week low of $0.16 per share, recorded on September 30.
Since last week, DryShips has touted 15 panamaxes and two supramaxes for sale, brokers told Splash on Monday.
Read several similar articles during this time frame. Concurrently I have see DRYSHIPS is selling it’s capital equipment. One has to wonder what basis can DRYSHIPS used for future business? What basis will the use to even exist?
It appears to me the maneuvering that has taken place is criminal. Millions of investors have been abused and frankly illegally robbed.
Perhaps there is something somewhere that support and recovery, I wonder how they have stayed solvent this long. I invested at $4.25 with the assumption DRYSHIPS was above board and would ultimately recover. That assumption was based on grossly misrepresented data. So my position is the stock will be delisted and bankruptcy will be forthcoming unless the CEO can see more opportunities to steal more dollars.
RD T
Hi Ruth, thanks for commenting! I would be very surprised if DryShips were to go bankrupt. Amit Mehrotra, Deutsche Bank’s lead shipping analyst, told me in September that he thinks the asset sell-off is just part of a longer-term plan to recapitalise the business. He said: “Fast forward six months and the company will have no assets but will have very little debt, some net cash and its stake in Ocean Rig, and it can basically start anew.” So that’s one explanation, I guess. You can read his comments in the article here: https://splash247.com/dryships-to-sell-17-vessels-at-a-795m-loss/
HB.