Nasdaq Warns Diana Containerships

Image Courtesy: Diana Containerships

Greece-based containership owner Diana Containerships has breached the minimum bid price requirement of USD 1 per common share on the Nasdaq Global Market. 

The company received a letter from Nasdaq, dated May 22, 2017, indicating that the minimum bid price for its common stock was below the requirement for a period of 30 consecutive business days, from April 6 to May 19, 2017.

Diana Containerships now has 180 days to regain compliance, with the applicable grace period until November 20, 2017.

“The company intends to monitor the closing bid price of its common stock between now and November 20, 2017, and is considering its options, including a reverse stock split, in order to regain compliance with the Nasdaq Global Market minimum bid price requirement,” Diana Containerships said in a statement.

Compliance would be regained if the closing bid price of common stock is USD 1 per share or higher for at least ten consecutive business days during the grace period.

Diana Containerships said that its common stock will continue to be listed and trade on the Nasdaq Global Market, adding that the company’s business operations are not affected by the receipt of the notification.

In a separate announcement, Diana Containerships revealed it has entered into a time charter contract with Japanese shipping company Mitsui O.S.K. Lines (MOL) for one of its Post-Panamax container vessels, M/V Puelo.

The gross charter rate is USD 14,600 per day for a period of about 50 days. The charter is expected to start on June 13, 2017.

The 6,541 TEU boxship is currently chartered to Switzerland-based Mediterranean Shipping Company (MSC) at a gross charter rate of USD 6,500 per day.

The employment of the 2006-built vessel is anticipated to generate approximately USD 730,000 of gross revenue for the scheduled period of the time charter, according to the company.

Earlier this week, Diana Containerships released quarterly financial results which show that the company widened its net loss in the first quarter of this year, reaching USD 7.4 million, compared to a net loss of USD 5.8 million seen in the respective period last year.

Currently, Diana Containerships’ fleet comprises twelve container vessels – six Post-Panamaxes and six Panamaxes.

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