PostRock Energy Corp. (NASDAQ: PSTR) received a notice on Aug. 25 from The NASDAQ Stock Market that, for the last 30 consecutive business days, PostRock's market value of publicly held shares was below $5,000,000 and that PostRock is therefore not in compliance with the market value of publicly held shares pertaining to the requirement set forth in NASDAQ Listing Rule 5450(b)(1)(C). The NASDAQ Listing Rules define "publicly held shares" as total shares outstanding, less any shares held directly or indirectly by officers, directors or a beneficial owner of more than 10% of the total outstanding shares.
Furthermore, on Aug. 28, PostRock received another notice stating that NASDAQ has determined that PostRock's securities will be delisted from NASDAQ. The letter states that the delisting notice was issued as a result of PostRock's announcement in its press release dated Aug. 19 that it will not be seeking to file a compliance plan with respect to its failure to satisfy NASDAQ's Listing Rule 5450(b)(1)(a), in addition to PostRock's confirmation on Aug. 27 that it did not intend to voluntarily withdraw its NASDAQ listing.
PostRock does not intend to request an appeal of this determination. As a result, trading of PostRock's common stock will be suspended at the opening of business on Sept. 9 and a Form 25-NSE will be filed with the US Securities and Exchange Commission, which will remove PostRock's securities from listing and registration on The NASDAQ Global Market.
After trading is suspended on the NASDAQ, PostRock's securities will be immediately eligible for trading on the OTC Bulletin Board (the OTCBB) or the OTC Pink Marketplace (the Pink Sheets), but only if a market maker applies successfully to quote the securities. There can be no assurance that any market maker will decide to quote PostRock's securities following suspension of trading. As a result, there is no assurance that PostRock's securities will be eligible to trade on the OTCBB or the Pink Sheets.
PostRock Energy is engaged in the development, production, and gathering of crude oil and natural gas, primarily focused on the Cherokee Basin of southeast Kansas and northeast Oklahoma, and in central Oklahoma. The company owns and operates more than 3,000 wells and maintains nearly 2,200 miles of gas gathering lines primarily in the Cherokee Basin.