Sino-Global has received a notice of non-compliance from NASDAQ that could threaten the China-backed company’s listing on the stock exchange.
The company’s share price traded at below $1.00 per share for over 30 consecutive business days between September 5 and November 5 and continues to do so, which fails to comply with NASDAQ’s Continued Listing Rule 5550(a)(2), the notice stated on November 6.
Sino-Global has an 180-day period ending May 4, 2016 in which to regain compliance by achieving a share price of over $1.00 for a minimum of 10 consecutive business days. The stock is currently trading at $0.84 per share.
The company may be eligible for an additional 180-day grace period after May 4, subject to certain NASDAQ rules and at the discretion of its staff. But if Sino-Global is judged by NASDAQ to be unable to improve its share price, the company may be delisted from the stock exchange.
Anthony S Chan resigned on November 9 as Sino-Global’s executive vice-president and member of its board of directors. The company said his resignation “was not the result of any disagreement”.
Sino-Global announced a stock repurchase programme in October, in which the company plans to spend up to $100,000 buying back its shares during the fourth quarter 2015.
Sino-Global has 7.4m shares outstanding, of which 62.13% are owned by insiders at the company and 0.5% are owned by institutions.
Chinese shipowner Weixiong Yang purchased a 5.97% stake (500,000 shares) in Sino-Global in July.
In April, Hong Kong-based Rong Yao International Shipping received a tranche of 1.2m shares (then worth $2.2m) as a partial consideration for the sale of its small oil/chemical tanker Rong Zhou (8,818 dwt, built 2010), giving the Chinese company a 16.21% stake in Sino-Global.