Possible Stock Delisting Adds to Stornoway Woes

RAPAPORT… Stornoway Diamond Corporation has until December 20 to comply with Toronto Stock Exchange (TSX) requirements or face a delisting of its common shares.


“There can be no assurance that the corporation will
successfully regain compliance with the TSX listing requirements within this
time period,” the miner explained. “In which case, the corporation’s common
shares and convertible debentures would cease to trade on the TSX, and…may not
continue to trade on any other trading platform.”

Stornoway referred to a section in the TSX guidelines for trading, which explains that a company can be delisted if “it is questionable as to whether the listed company will be able to continue as a going concern.” 

Earlier this month, the miner warned shareholders that it does not have the required cash to operate the Renard mine for another year. The company also expressed doubt it will find an investor before the September 16 deadline given by lenders. Stornoway will have defaulted on CAD 11.7 million ($8.8 million) bridge loan if it fails to find a buyer or settle the debt by that date.  

Stornoway’s stock fell 25% in early trading Friday following
the announcement. The stock, which had dropped to 0.025 cents on the TSE
following the earlier announcement, is now trading at 0.015 cents.

Image: The Renard mine. (Stornoway)