NewLead faces firing squad

Greek owner at risk of losing US listing after being accused of misleading investors.

Nasdaq appears to be mounting another crusade to strip NewLead Holdings of its US listing after accusing the issuer of misleading investors.

The Athens-based bulker and tanker operator shed light on the allegations in a statement released Thursday afternoon but offered few details.

Citing a letter received yesterday the owner said the exchange intends to delist the company’s shares “based on public interest concerns raised by certain false and misleading public disclosures made by the company” but failed to elaborate further.

The operator indicated that it was also accused of “failing to demonstrate the ability to sustain compliance with the exchange’s $1.00 minimum bid price requirement”, an issue the owner has been forced to address on numerous occasions in recent years.

“As a separate and additional basis for delisting, the company was notified that it had not regained compliance, by 23 June 2014, with the $50m in market value of listed securities requirement for continued listing on The NASDAQ Global Select Market,” it continued.

“As a result of the foregoing, the company's securities will be subject to delisting unless the company requests a hearing before the NASDAQ Hearings Panel by 7 July 2014 to present a plan to regain compliance and address the staff's concerns. “

NewLead, which is led by chief executive Michael Zolotas, says it intends to request a hearing before the panel as soon as possible and assured shareholders that its stock, which at last check was commanding less than $0.50, will continue to be listed until a determination is made.

TRENDING TODAY