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Fountain Powerboat Industries’ stock will be suspended from trading on NYSE Alternext US, successor to the American Stock Exchange.
In paperwork filed today with the Securities and Exchange Commission, the company disclosed it was notified that it was subject to immediate delisting unless it appealed the exchange’s decision by Feb. 2.
“In light of current economic conditions in general and, in particular, conditions within the marine industry, the company does not believe it can regain compliance with the Exchange’s continued listing standards in the near term,” Fountain stated. “As a result, the company's board of directors has elected not to appeal the staff's determination.”
Following the delisting, Fountain’s outstanding shares will be quoted in the Pink Sheets under a new trading symbol, which has yet to be publicly announced.
This morning, Fountain’s stock was listed at 33 cents per share. Its 52-week high and low are $1.93 and 22 cents.
In suspending Fountain, the exchange noted that the company had “sustained losses that were so substantial in relation to its overall operations or its existing financial resources, or its financial condition had become so impaired” that it was questionable whether the company would be able to continue operations.
Based on the exchange’s review of the company’s annual report, it determined Fountain was not in compliance because its stockholders’ equity was less than $2 million, and it had incurred losses from continuing operations and net losses in two of the three most recent fiscal years.
Earlier this week, Fountain received notice from the exchange that the company had not made a reasonable demonstration of its ability to regain compliance within the allotted time, and Fountain also was not in compliance because the aggregate market value of its publicly held shares has been less than $1 million for more than 90 consecutive days.
Maybe Reggie will have to sell some of his gold chains after all...
One more nail in the coffin for another boat manufacturer. If things do not improve, you will see some big names fall by the wayside. Those smaller, family-owned manufacturers will be more able to weather this lousy economy better than the big guys.
Tough times.....bad news all around
I can read what you posted Aboater, but coming from a guy that knows little about the subject, what does that mean to that company or any other company that it happens to in general? Out of business? Or soon to be out of business?
Andy
__________________ Andy Munao Our new parts site: www.simyamaha.com Yamaha Outboard Sales, Parts and Service 1-800-213-3323 parts@shipyardisland.com Click the logo to see our THT Vendor Forum
Delisting's not a big deal, happens to publicly-traded companies all the time. Reggie will find a way to come out of this, as propbender said, either by taking the company private or by bringing on a private money man to bail him out. Maybe Obamalama will throw him a few mil to stay afloat...
A company being delisted does not mean the company is going under, It just means the stock wont stay above a certain dollar amount....But its not a good sign.
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24' Grady White - SOLD!
13' Boston Whaler
I can read what you posted Aboater, but coming from a guy that knows little about the subject, what does that mean to that company or any other company that it happens to in general? Out of business? Or soon to be out of business?
Andy
In short, all it means is that the company has failed to maintain the minimum thresholds as set forth by the exchange that it is listed on. These thresholds vary by each exchange.
Certainly de-listing is not good news, but it is not the end of the world either. One thing that it may trigger is a default in credit agreements as most standard agreements for publicly traded companies contain covenants that the company remain listed.
Truthfully, in today's public markets, between the onerous listing requirements, excessive listing fees, excessive ongoing SG&A cost associated with being listed, it can make more financial sense to remain private.
My personal guess would be that should Fountain default on its creditors and face a BK, that PE money will be there to pick it up on the cheap. There is a lot of value in that name and their molds.
__________________ Move along, nothing to see here.
I can read what you posted Aboater, but coming from a guy that knows little about the subject, what does that mean to that company or any other company that it happens to in general? Out of business? Or soon to be out of business?
Delisting's not a big deal, happens to publicly-traded companies all the time. Reggie will find a way to come out of this, as propbender said, either by taking the company private or by bringing on a private money man to bail him out. Maybe Obamalama will throw him a few mil to stay afloat...
Delisting's not a big deal, happens to publicly-traded companies all the time. Reggie will find a way to come out of this, as propbender said, either by taking the company private or by bringing on a private money man to bail him out. Maybe Obamalama will throw him a few mil to stay afloat...
To each there own but I wouldn't purchase a new boat from a company that was just delisted. Not a good sign. It doesn't mean they are going out of business but getting pretty close unless they can find some cash to pull them through.
__________________ 43' Cabo FB
36' Grady White
27' Contender
It's no big deal - someone will probably take the company private which is likely a good move. Who wants to deal with a publicly traded company and have to fork over all the money and then open your books up to public scrutiny? No thanks.
And yes, I would buy a product from a de-listed company without hesitation.
It is interesting watching these public companies start to fail and delist - as others have stated if the company has assests that are worth much at all it will be purchased by a venture capitial group. This is what happen/is happening in the auto industry currently. You would be amazed to see who owns some of the Tier 2's that I deal with, and even more amazed to see what those venture capitial firms own.
JD
__________________ Contender 25 - Twin 200 HPDI's - Fishing for Steelies on the north shore of Erie
Fountain De-Listed from NYSE 
