Mountain Province has been given six months to raise its share price or it will no longer be eligible to list on the Nasdaq stock exchange, it said Tuesday.
The Canada-based miner’s stock is currently valued at $0.97, below the minimum bid price of $1 per share required for maintaining a spot on the exchange. It received the warning because its price had fallen below that level for more than 30 consecutive business days.
In its compliance notice, Nasdaq granted Mountain Province until February 10 to reach that threshold, Mountain Province explained. Once that level is achieved, it must be maintained for 10 consecutive trading days in order to be considered effective. If the miner fails to achieve compliance within the six-month period, or if its price should not hold for 10 consecutive days once it reaches the $1 mark, it may apply for additional time to regain compliance with Nasdaq’s listing rules.
Mountain Province’s stock fell from $1.11 per share on June 26 amid ongoing challenges in the market, including an oversupply in the midstream, tightened credit to Indian manufacturers, and a slowdown in the market caused by the US-China trade war.
The Nasdaq notice does not affect the company’s listing on the Toronto Stock Exchange, the miner noted.
Mountain Province owns 49% of the Gahcho Kué mine in Canada, with the remainder held by De Beers.
Image: The Gahcho Kué mine. (Mountain Province)