Sino-Global gets share price warning from NASDAQ

Sino-Global gets share price warning from NASDAQ

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.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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