ATHENS, Greece, May 25, 2016 /PRNewswire/ -- Paragon Shipping
Inc. (NASDAQ: PRGN) (the "Company") announced today that it has
received written notification from The NASDAQ Stock Market
("NASDAQ") dated May 19, 2016,
indicating that because the Company's stockholders' equity as of
December 31, 2015 was below
$2,500,000, the Company no longer
meets the minimum stockholders' equity requirement for The NASDAQ
Capital Market, set forth in NASDAQ Listing Rule 5550(b)(1).
Pursuant to the NASDAQ Listing Rules, the Company has 45 calendar
days to submit a plan to regain compliance. If the plan is
accepted, NASDAQ can grant an extension of up to 180 calendar days
from the date of the notification letter to evidence
compliance.
The Company has voluntarily determined to move the listing of
its common stock from The NASDAQ Capital Market to the OTC Markets'
OTCQB Venture Market. The Company anticipates that trading of the
Company's common stock under the ticker symbol "PRGNF" is expected
to commence June 6, 2016. In
addition, the Company anticipates that its Senior Unsecured Notes
will also be moved to the OTC Markets.
The Board of Directors' voluntary decision to move the Company's
listing from NASDAQ to OTCQB was made following the detailed review
of numerous factors including the significant compliance
obligations and restrictions that result from the maintenance of a
NASDAQ listing, including the associated out-of-pocket costs
(compared to the OTCQB) and the Board's determination that the
Company is unlikely to regain compliance with the minimum
stockholders' equity requirement within the time frames required by
NASDAQ. Based on the foregoing factors, the Board of Directors does
not believe there is continuing shareholder value in attempting to
maintain the Company's listing on NASDAQ at this time. The
Company will continue to file periodic and other reports with the
Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934, as amended, and other federal securities
laws.
Newbuilding Contracts:
On May 24, 2016, the Company
received a notice of default from Yangzhou Dayang Shipbuilding Co.
Ltd., or Dayang for not taking delivery of the Ultramax newbuilding
drybulk carrier with Hull number DY4050.
About Paragon Shipping Inc.
Paragon Shipping is an international shipping company
incorporated under the laws of the Republic of the Marshall Islands with executive offices in
Athens, Greece, specializing in
the transportation of drybulk cargoes. Paragon Shipping's current
newbuilding program consists of three Kamsarmax drybulk carriers
that are scheduled to be delivered in the third and fourth quarter
of 2016. The Company's common shares and Senior Unsecured Notes
trade on NASDAQ Capital Market and NASDAQ Global Market under the
symbols "PRGN" and "PRGNL," respectively. For more information,
visit: www.paragonship.com. The information contained on the
Paragon Shipping's website does not constitute part of this press
release.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. Such risks and uncertainties include, without
limitation, the strength of world economies and currencies, general
market conditions, including fluctuations in charter rates and
vessel values, changes in demand for drybulk shipping capacity,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, charter counterparty
performance, ability to obtain financing and comply with covenants
in such financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other factors, as well as
other risks that have been included in filings with the Securities
and Exchange Commission, all of which are available at
www.sec.gov.
Contacts
Paragon Shipping Inc.
ir@paragonshipping.gr
DresnerAllenCaron
Rudy Barrio (Investors)
rbarrio@dresnerallencaron.com
(212) 691-8087
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SOURCE Paragon Shipping Inc.