Westmoreland Coal Co. received notice from the Nasdaq Stock Market that its share price and market value have fallen below the minimum threshold for listing on the exchange.
According to a March 23 news release, the coal producer received a letter March 22 from Nasdaq that said the price of Westmoreland's common stock had closed below $1 per share for the last 30 consecutive business days and another letter March 23 stating that the market value for the company's publicly held common stock had closed below $15 million for the same period.
The letters do not have an immediate effect on the listing or trading of Westmoreland's common stock on Nasdaq, Westmoreland said, and the company has until Sept. 18 with respect to the bid price rule and until Sept. 19 with respect to the market value rule to regain compliance with the listing standards.
Westmoreland's stock would have to meet the minimum standards for at least 10 consecutive business days to regain compliance.
Westmoreland said it may be eligible for additional time to regain compliance after those deadlines and may request a hearing before a hearings panel if not otherwise eligible.
S&P Global Ratings lowered the coal producer's credit rating to CCC- from CCC on March 9, citing a potential default or restructuring.
The coal producer also recently hired advisers to help its "capital structure improvement process."
Westmoreland announced March 19 that it would issue a press release reporting financial results for the fourth quarter and full year 2017 on April 2 but would not be holding a conference call for investors "in light of ongoing discussions with the company's creditors in connection with its capital structure review." It also said its 2017 financial statements will likely contain a warning about the ability of the company to continue as a going concern.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global Inc. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.