TOP Ships Takes Newbuild, Gets Nasdaq Warning
Nasdaq-listed tanker owner TOP Ships Inc. took delivery of the M/T Eco Revolution, a 39,000 dwt “ECO” MR product tanker, the fourth of six vessels under construction in the company’s fleet.
The remaining two vessels are scheduled for delivery in the second and third quarter of 2016.
The M/T Eco Revolution has commenced its time charter employment with BP Shipping Limited.
The company also said that it has received written notification from the Nasdaq Global Select Market, indicating that because the market value of its shares was below the minimum USD 5,000,000 requirement for the previous 30 consecutive business days for continued listing on Nasdaq, TOP Ships was not in compliance with the stock exchange listing rules.
The applicable grace period to regain compliance is 180 days. Compliance would be regained if the company’s MVPHS were to close at or above USD 5,000,000 for a minimum of 10 consecutive business days before the expiration of the grace period.
The company said it intends to monitor the market value of its publicly held shares between now and July 25, 2016, and that it was considering options in order to regain compliance.
Separately, TOP Ships said that its Board of Directors has determined to effect a 1-for-10 reverse stock split of the company’s common shares.
The reverse stock split will take effect as of the opening of trading on February, 22, 2016 under the existing trading symbol “TOPS.”
“When the reverse stock split becomes effective, every 10 shares of the company’s issued and outstanding common stock will be automatically combined into one issued and outstanding share of common stock. This will reduce the number of outstanding common shares from approximately 34.3 million shares to approximately 3.4 million shares,” the company said.
No fractional shares will be issued in connection with the reverse split of the issued and outstanding common stock.