Armco Metals Holdings, Inc. (NYSEMKT: AMCO) is a company in distress. The company recently announced that it has embarked on a process to voluntarily delist its stock from NYSEMKT. Armco announced cessation of active operations and warned that the sale of its Lianyungang subsidiaries might not happen.
If you can remember Armco Metals Holdings, Inc. (NYSEMKT: AMCO) was initially trading on NYSE, but because of failing to live up to the standards for continued listing, the stock dropped down to trade on the small-cap NYSEMKT. But it has recently become difficult for the company to sustain its listing on NYSEMKT, prompting the small-cap stock exchange market to issue it with a delisting notice.
So what is happening next? The management of Armco has explored all the available options and reached a conclusion that struggling to regain NYSEMKT listing compliance is worth the effort. In that case, the company has decided to voluntarily withdraw its listing from NYSEMKT so that it can list on the OTCBB/Pink Sheets where listing requirements are a bit flexible.
What is pushing Armco Metals Holdings, Inc. (NYSEMKT: AMCO) out of NYSEMKT?
Although Armco Metals Holdings, Inc. (NYSEMKT: AMCO) has said that it is voluntarily delisting from NYSEMKT, it was not originally its intension to do so. It was NYSEMKT that sent a notice letter to the company that it had fallen short of the standards required for continued listing on the stock exchange market. The notice letter was triggered by Armco’s delayed filing of its quarterly results for the quarter ended March 31, 2016.
Delisting from NYSEMKT might save Metals some headache like struggling to regain compliance for continued listing on the market. But the move will impact its profile and further diminish its exposure to large investors.
AMCO is shrinking
Armco Metals Holdings, Inc. (NYSEMKT: AMCO)’s delisting from NYSEMKT comes at a time when the company has also ceased active operations. The management cited shortage of funds as the reason for halting operations in the Lianyungang subsidiaries. Although Armco expected to sell those subsidiaries to an entity called Jiangsu Yungang, the management recently warned that completing such transaction appeared impossible after Armco ceased operations in the subsidiaries.