Escalera Resources Co (NASDAQ:ESCR) plunged tremendously during the previous trading session after the company expresses its intention to delist voluntarily its stock from the Nasdaq Stock Market (Nasdaq).
Delisting announcement
The announcement came in the wake of the company’s failure to comply with the stock exchange’s listing regulations. It came to the knowledge that the company was unable to meet the requirements of minimum stockholders’ equity as well as the closing bid requirements to be able to continue its listing on the exchange.
As per the non-compliance letter sent by the Nasdaq on August 20, 2015, Escalera Resources Co (NASDAQ:ESCR) had time till October 12, 2015 to submit a plan on steps taken to fulfil the listing requirements. However, the company came to a conclusion that they will not submit the plan and will go for voluntary delisting.
Decision after review
As per the company, the decision to delist was taken on the basis of multiple factors. It informed that the company took the decision after carefully reviewing the benefits that may generate following the continued listing as well as its current stockholders’ equity and stock price. Also, in view of the current liquidity position and lack of capita raising opportunities, Escalera Resources Co (NASDAQ:ESCR) took a call to delist the shares as it foresees continuity of non-compliance.
As per the decision, the company is expected to submit Form 25, under the section 12(b) of the Securities Exchange Act of 1934 to the SEC on October 19, 2015. The delisting is expected to take place by the end of the month. The stock of the company fell by more that 10% to settle at $0.17, however, it has seen some rebound early today.
Swift Energy Company (NYSE:SFY) is another stock that is taking the beating. The stock of the oil and gas company was down by more than 3% to $0.645 during today’s early trading session.
