Daqo New Energy Corporation, a Chinese manufacturer of polysilicon, has received a notification from the New York Stock Exchange (NYSE) claiming that the company does not meet its price criteria.
As outlined in section 802.01C of the NYSE’s Listed Company Manual, the NYSE's price criteria requires all listed security trade to have a minimum average closing price of US$1.00 during any consecutive 30-trading day period. As of July 24, 2012, the average closing price of Daqo New Energy’s American Depositary Shares (ADS) was less than US$1.00 per ADS over a consecutive 30-trading day period.
Following receipt of this notification, the company has six months to regain compliance with the minimum share price requirement during the cure period. The company has already notified the NYSE that it intends to cure the price deficiency and re-comply with its requirements.
In order to regain compliance, the company’s ADS must have a closing share price of at least US$1.00 on the last trading day of any calendar month during the cure period as well as an average closing share price of at least US$1.00 over the 30-trading day period ending on the last trading day of that month or on the last day of the cure period.
Yesterday, Daqo New Energy posted its second quarter results for 2012, which its revenues tumble to US$30.6 million from US$34 million in the first quarter of 2012. The bulk of this came from sales of polysilicon which generated US$23.6 million.