Paragon Offshore plc (NYSE: PGN), a global provider of offshore drilling rigs, received a letter on Dec. 8 from the New York Stock Exchange (NYSE) notifying Paragon that it had fallen below the NYSE's continued listing standard that requires listed companies to have a minimum average market capitalization greater than $50 million over a 30-trading-day period and total stockholders' equity greater than $50 million.
Pursuant to the NYSE's customary procedures, Paragon has 45 calendar days to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the NYSE's continuing listing standards on or before June 2, 2017. Paragon currently intends to submit a plan to the NYSE within the required time frame.
If the NYSE accepts the plan, Paragon's shares will continue to trade on the NYSE and Paragon will be subject to quarterly monitoring by the NYSE for compliance with the plan. If the NYSE rejects the plan, however, the NYSE will begin procedures to delist Paragon's shares from the NYSE. If the NYSE rejects Paragon's plan, Paragon intends to seek the transfer to an alternate exchange or trading market.
As previously reported on Aug. 8, Paragon received a notice from the NYSE that it was not in compliance with another of the NYSE's continued listing standards, as the company did not maintain an average closing price of greater than $1 over 30 consecutive trading days. Paragon has 180 days, or until Feb. 8, 2016, to regain compliance with the NYSE's minimum share price requirement. However, as previously disclosed, if Paragon determines that it must cure the price condition by taking an action that will require approval of its shareholders, Paragon may also regain compliance by obtaining the requisite shareholder approval by no later than Paragon's next annual meeting, and implementing the action promptly thereafter; provided that the price of Paragon's common shares promptly exceeds $1 per share, and the price remains above the level for at least the following 30 trading days.
These NYSE notifications do not affect Paragon's business operations and do not conflict with or cause an event of default under any of Paragon's material debt or other agreements.