One down, one to go: Mammoth Energy Services clears a hurdle to stay listed on Nasdaq
One Oklahoma energy company has managed to stay on a major stock exchange without having to undertake a reverse stock split.
Mammoth Energy Services recently announced that a rebound in the value of its stock has enabled it to meet one of various requirements that must be fulfilled in order for it to remain listed on Nasdaq.
In April, the Oklahoma City-based firm filed a notice with the U.S. Securities and Exchange Commission that its stock, traded under the ticker TUSK, was in danger of being dropped by the exchange after its average value had closed below a minimum-required $1 value for 30 consecutive business days.
At the time, the company indicated Nasdaq would give it 180 days to correct the deficiency, plus extra time to cure the issue by suspending enforcement of that aspect of its listing rules until the end of June.
Since May 7, its stock has been consistently trading at a value of $1 or greater, and in a filing the company made on May 22 with the SEC, officials said the matter is “now closed.”
However, Mammoth also has additional work to do in order to remain qualified to have its stock traded on the exchange.
The exchange requires that companies with listed stock maintain a three-member audit committee composed of independent board members.
Mammoth fell out of compliance with that aspect of the rule earlier this month, when Jonathan H. Yellen, an independent board member who was on the audit committee, resigned May 8, leaving the company with only two independent board members serving on the committee.
In a letter Mammoth received May 19, Nasdaq told the company it must regain compliance in that regard by May 8, 2021, unless it holds an annual meeting later this year.
If that occurs, the vacancy must be filled by Nov. 4, officials stated as part of the filing.
Officials said the company intends to add a third independent director to the audit committee to maintain compliance.
Mammoth’s stock fell to a recent low of 57.5 cents a share on April 7, but generally has been improving in value since.
On Friday, its bid price was $1.22 per share.