South Texas Oil Co. Regains Compliance with Nasdaq Listing Requirements
South Texas Oil Co has been notified by the Nasdaq that it has regained compliance with continuing listing requirements for the Nasdaq Global Market.
As previously disclosed, on May 20, 2009, South Texas Oil Company received a Nasdaq Staff Deficiency Letter from Nasdaq's Listing Qualifications Department indicating that the Company was not in compliance with the minimum $10,000,000 stockholders' equity requirement for continued listing on the Nasdaq Global Market.
As disclosed in the Company's Form 8-K filed with the Securities and Exchange Commission on June 18, 2009, the Company submitted to Nasdaq on June 4, 2009 a plan for regaining compliance with the continued listing requirements based, in part, upon the closing of the Company's $27.3 million debt restructuring transactions, with Longview Fund L.P., its largest stockholder, which closed effective May 18, 2009. The Company's plan indicated that the restructuring transactions would have a positive effect on the Company's stockholders' equity, which would enable the Company to satisfy the stockholders' equity requirement for continued listing on the Nasdaq Global Market. Specifically, the Company's plan indicated that:
- The Company will have increased available cash for operations by reduction of debt service of approximately $8,800 per day (or approximately $3.2 million per year) associated with the reduction of debt as a result of the proposed exchange. There are currently no arrears in principal or interest in respect to the Notes.
- The Company will have a significant improvement of its balance sheet and total stockholders' equity, which will result in a greater ability to attract future financing to support strategic growth.
On June 22, 2009, the Nasdaq notified the Company that on the basis of the Company's June 18, 2009 Form 8-K filing, and subject to continued monitoring of the Company's ongoing compliance with the stockholder's equity requirement, Nasdaq has determined that the Company once again complies with the Nasdaq's listing qualifications for listing on the Nasdaq Global Market.
- South Texas Oil Co. Regains Compliance with Nasdaq Listing Requirements (Jun 23)
- South Texas Oil Co Updates on Operations, Provides Asset Overview (May 28)
- South Texas Oil Co Receives Nasdaq Staff Deficiency Letter (May 25)