Dallas, Texas 10/16/2013 (Financialstrend) – Greece based NewLead Holdings Ltd (NASDAQ:NEWL) run-ins with its debtors, market regulators and trading browsers seem to be never ending. At current depleted valuations it has a market cap of $14.48 million with accumulated operating loss of $400 over the past 12 month period. Its cash flow has almost grinded to a halt since most of its fleet of ocean going ships that it requires to transport cargo and in turn earn proceeds have been attached or confiscated by debtors who are fast losing patience with the shipping company.
In the latest dampener that has engulfed the long suffering share holders of this firm is the news that NASDAQ listing qualifications team has written to the Piraeus based shipping company about its continued non compliance of NASDAQ basic requirement of trading stocks maintaining a minimum bid price of $1. Readers should note that the same team from NASDAQ had cautioned and set a deadline of October 1 for NEWL to become compliant with the minimum bid requirement.
The October 4 communiqué goes on to inform NewLead that its stock is liable to be delisted if the company fails to appear before NASDAQ Hearings panel before October 9. The hearing panel would be examining specific plan of action that shipping firm has charted out to review the fortunes of its shares in a realistic time frame. If such a plan fails to impress the review board, it will go ahead and recommend to NASDAQ board to temporally suspend and in serious cases permanently delist the trading stock.
Share holders of the close to 160 million shares outstanding of common stock are facing very realistic scenario of being left holding on to share certificates which will have no market value if the NEWL stock does get delisted. As of close of business on October 15, NEWL shares were trading at $0.09 per share.