Paragon Shipping announced that it received a positive determination from the Nasdaq Stock Market granting approval of the Company’s request to transfer its listing to the Nasdaq Capital Market from the Nasdaq Global Market.
The Company has also been granted an additional 180-day grace period to regain compliance with the Nasdaq’s minimum bid price requirement.
The Company’s securities will begin trading on the Nasdaq Capital Market effective at the opening of business on November 11, 2015. The Company’s common shares and senior notes will continue to trade on Nasdaq under the symbols “PRGN” and “PRGNL,” respectively. The Nasdaq Capital Market is a continuous trading market that operates in substantially the same manner as the Nasdaq Global Market. Listed companies must meet certain financial requirements and comply with Nasdaq’s corporate governance requirements.
As previously reported, the Company was notified by Nasdaq Stock Market on May 14, 2015, that it no longer satisfied the minimum bid price requirement for continued listing of $1.00 per share, as set forth in Nasdaq Listing Rule 5450(a)(1). In anticipation of not meeting the minimum bid price requirement by November 10, 2015, the end of its initial 180-day grace period, the Company applied to transfer the listing of its stock to the Nasdaq Capital Market. As a result of the transfer to the Capital Market, the Company is being provided with an additional 180-day grace period to regain compliance with the Nasdaq’s minimum bid price requirement. In order to regain compliance, the minimum bid price per share of the Company’s common stock must be at least $1.00 for at least ten consecutive business days during the additional 180-day grace period, which will end on May 9, 2016. 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. If the Company fails to regain compliance during this grace period, the Company’s common stock will be subject to delisting by Nasdaq.