Greece-based owner of drybulk carriers and offshore support vessels DryShips Inc. has been notified by the Nasdaq Stock Market that the company is not in compliance with a Nasdaq Listing Rule as the closing bid of its common stock was below the required minimum.
The notification indicates that the closing bid price for 30 consecutive business days, from June 14, 2016 to July 26, 2016, was below the minimum USD 1 per share bid price requirement for continued listing on the Nasdaq Capital Market.
DryShips has been given a grace period of 180 days, or until January 23, 2017, to regain compliance.
The company has determined to effect a 4-for-1 reverse stock split, in order to regain compliance with the Nasdaq Capital Market minimum bid price requirement.
If it fails to regain compliance within the initial grace period, DryShips may be eligible for an additional 180-day grace period.
The company said that its business operations are not affected by the receipt of the notification.
At the beginning of June, DryShips signed an agreement with an institutional investor for the sale of 5,000 newly designated Series C convertible preferred shares after its shares dropped due to defaulting on three loan payments, which amount to USD 213.7 million through March 2017.
DryShips had USD 280 million in total liabilities as of March 31, 2016, according to a Securities and Exchange Commission filing.
In an effort to improve its liquidity position, DryShips sold all of its tankers and 19 bulkers or bulker owning entities.