China Shen Zhou Mining & Resources Drops 16%, Just Above New Low, on NYSE Non-Compliance Letter
China Shen Zhou Mining & Resources ( SHZ ) is down 15.7% at $0.22, inching above the new 52-week low of $0.21 set this morning after the company said that it has received a letter from the NYSE exchange advising that the company is below certain of the exchange's continued listing standards.
After reviewing the company's From 10-Q for the quarter ended June 30, 2012, the exchange indicates that SHZ is not in compliance with Section 1003(a)(iv), which applies if a listed company has sustained losses that are substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the exchange, as to whether the company will be able to continue operations and/or meet its obligations as they mature.
SHZ has until November 30 to submit a plan of compliance to the exchange, demonstrating the company's ability to regain compliance. If the company does not submit a plan of compliance, or if the plan is not accepted by the exchange, the company will be subject to delisting.
SHZ said it believes it can provide the exchange with a satisfactory plan by the deadline.