Glori Energy Inc. (Nasdaq: GLRI) has submitted a notice to The Nasdaq Stock Market LLC of its intention to voluntarily withdraw the company's common stock from listing on Nasdaq and to voluntarily terminate the registration of common stock under Section 12(b) of the Securities Exchange Act of 1934, as amended. The company intends to continue to file periodic reports on Forms 10-K, 10-Q and 8-K with the Securities and Exchange Commission pursuant to the requirements of Section 15(d) of the Exchange Act.
As previously disclosed, on August 18, 2016, the company received a deficiency letter from Nasdaq indicating that the company's stockholders' equity as of June 30, 2016 did not meet the minimum $2.5 million requirement of Listing Rule 5550(b)(1) that is necessary to maintain continued listing on the Nasdaq Capital Market. The Notice stated that the company also did not, at that time, meet the market value of listed securities or net income from continuing operations standards that are alternatives to the stockholders' equity requirement. The company was given 45 days from the date of the notice to submit a plan to regain compliance. The notice and the deficiencies identified therein were in addition to the company's previously disclosed non-compliance with the minimum $1.00 bid price per share requirement under Listing Rule 5550(a)(2), which the company initially reported on October 23, 2015. The company had until October 17, 2016 to regain compliance with this requirement.
The company plans to take actions necessary for the company to be traded on one of the OTC Market Group trading systems.
Kevin Guilbeau, who took over as CEO of Glori following Stuart Page's resignation in June, stated, "Regardless of which exchange Glori trades on, our objectives remain the same. Our plan is to continue to pursue our Phoenix initiative, which consists of acquiring abandoned oil fields that have significant amounts of oil remaining in place. We have begun selectively leasing acreage in one such non-producing oil field that we believe has excellent reservoir qualities and contains significant amounts of unrecovered oil. We plan to apply a standard waterflood operation coupled with our AERO technology to unlock these left-behind reserves.
"To help shore up our liquidity and fund certain up-front costs necessary to complete the leasing and development plan for our first Phoenix project, we are in discussions with investors for a modest capital raise at the Glori corporate level. We are also evaluating project financing options to execute the development of the first project.”
The company expects the common stock will cease to be listed on Nasdaq on or about September 29, 2016.
Glori Energy is a Houston-based energy technology and oil production company that deploys its proprietary AERO technology to increase the amount of oil that can be produced from conventional oil fields. Glori owns and operates oil fields onshore U.S. and additionally provides its technology as a service to E&P companies globally.