it appears that poor market conditions has hit another Canadian gold producer. Excellon Resources (TSX: EXN) has received a notice related to listing standards for the New York Stock Exchange.
The company last night indicated that it has received notice that it is not in compliance with listing standards for the NYSE American. Rather than being related to minimum share pricing however, the issue actually relates to stockholder equity in the company – however, that notice based on current share pricing trends is likely to arrive in the coming days as well.
As per the exchange, stockholder equity must be as follows:
- At least $2.0 million or more if net losses reported in two of three of its most recent fiscal years
- At least $4.0 million or more if net losses reported in three of four of its most recent fiscal years
- At least $6.0 million or more if net losses reported in its five most recent fiscal years
In its most recent annual financial results, the company posted a net loss of $57.8 million, while for 2020 the company posted a net loss of $16.0 million. 2019 was also a poor year for Excellon, with a net loss of $10.1 million being posted, while 2018 saw a net loss of $7.7 million. Keeping with the trend, 2017 had net losses of $5.7 million, and 2016 had net losses of $14.1 million.
As a result, as per listing standards, the company must have stockholder equity of at least $6.0 million. Instead, 2021 saw the company’s shareholder equity decline from $50.4 million to that of negative $4.5 million.
Going forward, Excellon must submit a plan for how it intends to regain compliance. That plan is due by May 30, 2022. If the plan is not accepted or progress is not made in alignment with said plan, or compliance is not regained by October 30, 2023, then the company may be subjected to delisting from the exchange.
The development however does not impact the firms listing on the Toronto Stock Exchange.
Excellon Resources last traded at $0.82 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
