Houston American Energy Corp. (NYSE MKT: HUSA) has received notification from the NYSE MKT LLC that the company is not in compliance with certain NYSE MKT continued listing standards relating to stockholders' equity.
Specifically, the deficiency letter indicated that the company is not in compliance with Section 1003(a)(iii) (requiring stockholders' equity of $6 million or more if it has reported losses from continuing operations and/or net losses in its five most recent fiscal years). As of Dec. 31, 2015, the company had stockholders' equity of $5.5 million.
Houston American Energy is required to submit a plan to the NYSE MKT by April 18, advising of actions it has taken or will take to regain compliance with the continued listing standards by Sept. 18. The company intends to submit a plan by the April 18 deadline. If it fails to submit a plan, if its plan is not accepted, or if it fails to regain compliance by the deadline, the NYSE MKT may begin delisting procedures.
In addition, the deficiency letter indicated that the NYSE MKT staff has determined that the company's securities have been selling for a low price per share for a substantial period of time and, pursuant to Section 1003(f)(v) of the NYSE MKT Company Guide, its continued listing is predicated on taking appropriate steps to demonstrate sustained price improvement within a reasonable period of time, which the staff determined to be no later than Sept.19.
The company's common stock will continue to be listed on the NYSE MKT while it attempts to regain compliance with the listing standards noted, subject to its compliance with other continued listing requirements. Its common stock will continue to trade under the symbol "HUSA," but will have an added designation of ".BC" to indicate that the company is not in compliance with the NYSE MKT's listing standards. The NYSE MKT notification does not affect the company's business operations or its US Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of its material agreements.
Based in Houston, Texas, Houston American Energy’s property mix includes producing and nonproducing assets with a focus on Texas, Louisiana, and Colombia, and the company plans to acquire an ownership interest in an Australian-based shale resource company.