Advanced Search

Possible Stock Delisting Adds to Stornoway Woes

Aug 25, 2019 10:25 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

Stornoway Diamond Corporation has until December 20 to comply with Toronto Stock Exchange (TSX) requirements or face a delisting of its common shares.

“There can be no assurance that the corporation will successfully regain compliance with the TSX listing requirements within this time period,” the miner explained. “In which case, the corporation’s common shares and convertible debentures would cease to trade on the TSX, and…may not continue to trade on any other trading platform.”

Stornoway referred to a section in the TSX guidelines for trading, which explains that a company can be delisted if “it is questionable as to whether the listed company will be able to continue as a going concern.” 

Earlier this month, the miner warned shareholders that it does not have the required cash to operate the Renard mine for another year. The company also expressed doubt it will find an investor before the September 16 deadline given by lenders. Stornoway will have defaulted on CAD 11.7 million ($8.8 million) bridge loan if it fails to find a buyer or settle the debt by that date.  

Stornoway’s stock fell 25% in early trading Friday following the announcement. The stock, which had dropped to 0.025 cents on the TSE following the earlier announcement, is now trading at 0.015 cents.

Image: The Renard mine. (Stornoway)
Tags: Rapaport News, renard, Renard mine, stornoway, Stornoway Diamond Corporation, Toronto Stock Exchange, TSX
Similar Articles
Rio TintoRio Tinto Output Falls Amid Lower Grades
Oct 17, 2019
Lower mining grades and reduced ore availability contributed to a drop in Rio Tinto’s third-quarter diamond production,
AlrosaAlrosa Finds Diamond Inside a Diamond
Oct 06, 2019
Alrosa has recovered an unusual piece of rough featuring one diamond encased inside another, in a style similar
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2019 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.