With its share price last topping $1.00 on October 28, 2019, Canadian miner Mountain Province Diamonds (MPD) has notified the Nasdaq Stock Market of its intention to voluntarily delist its common shares from the Nasdaq Stock Exchange (NASDAQ). MPD's shares will continue to trade on the Toronto Stock Exchange (TSX) after the NASDAQ delisting becomes effective on or around February 11. The miner had already indicated last August that delisting was imminent.
Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. MPD is therefore no long in compliance with NASDAQ regulations. The miner has the option to apply for an additional six-months extension from NASDAQ for continued listing (subject to conditions) to regain its minimum bid price of US$1.00 per share. "However," they told us, "given that trading on the TSX accounts for a vast majority of the company's current daily trading volume, the costs associated with maintaining this listing are no longer justified."
MPD also expects to file with the Securities and Exchange Commission (the SEC) on February 10, 2020 and the delisting of the company's shares is expected to be effective ten days thereafter. The delisting will not affect the miner's continuing obligation to file required reports with the SEC, but MPD has also announced that it currently intends - when permitted under SEC rules - to terminate the registration of the company's shares with the SEC. MPD adds that it will comply with, and continue to be subject to, the laws of the Province of Ontario, Canada, the jurisdiction in which the company is incorporated, as well as Canadian securities laws and corporate governance rules applicable to Canadian publicly listed companies, including the rules of the TSX.
MPD is a 49% participant with De Beers Group in the Gahcho Kué diamond mine located in Canada's Northwest Territories.
Photo: Gahcho Kué mine, Mountain Province