Mountain Province has decided to delist itself from the Nasdaq stock exchange following six months in which its shares were below the minimum bid price.
The company, which is also listed on the Toronto Stock Exchange (TSX), has been out of compliance with Nasdaq since August, when its stock dipped below $1 per share minimum for more than 30 consecutive business days. At the time, Nasdaq gave the Canadian miner until February 10 to raise its price above the $1 mark, or to apply for an extension.
However, Mountain Province, which owns 49% of the Gahcho Kué mine in partnership with De Beers, feels the listing is no longer a viable option.
“Given that trading on the Toronto Stock Exchange accounts for a vast majority of the company’s current daily trading volume, the costs associated with maintaining this listing are no longer justified,” Mountain Province said last week.
Despite delisting from the US exchange, the miner will still be required to file reports with the US Securities and Exchange Commission (SEC), it explained. It intends to terminate its registration with the SEC at a future date.
Mountain Province will keep its listing on the TSX, and is currently evaluating alternative platforms for future listings to increase its liquidity, it noted.
The company expects its Nasdaq trading suspension to go into effect prior to market open February 11.
Image: The ore crusher at the Gahcho Kué mine. (Mountain Province)