Fountain Powerboat Industries’ stock will be suspended from trading on NYSE Alternext US, successor to the American Stock Exchange.
In paperwork filed today with the Securities and Exchange Commission, the company disclosed it was notified that it was subject to immediate delisting unless it appealed the exchange’s decision by Feb. 2.
“In light of current economic conditions in general and, in particular, conditions within the marine industry, the company does not believe it can regain compliance with the Exchange’s continued listing standards in the near term,” Fountain stated. “As a result, the company's board of directors has elected not to appeal the staff's determination.”
Following the delisting, Fountain’s outstanding shares will be quoted in the Pink Sheets under a new trading symbol, which has yet to be publicly announced.
This morning, Fountain’s stock was listed at 33 cents per share. Its 52-week high and low are $1.93 and 22 cents.
In suspending Fountain, the exchange noted that the company had “sustained losses that were so substantial in relation to its overall operations or its existing financial resources, or its financial condition had become so impaired” that it was questionable whether the company would be able to continue operations.
Based on the exchange’s review of the company’s annual report, it determined Fountain was not in compliance because its stockholders’ equity was less than $2 million, and it had incurred losses from continuing operations and net losses in two of the three most recent fiscal years.
Earlier this week, Fountain received notice from the exchange that the company had not made a reasonable demonstration of its ability to regain compliance within the allotted time, and Fountain also was not in compliance because the aggregate market value of its publicly held shares has been less than $1 million for more than 90 consecutive days.