Cardero Resource Corp. (TSX:CDU)(NYSE MKT:CDY)(FRANKFURT:CR5) reports that it has received a deficiency letter from the NYSE-MKT LLC.This letter states that the Company is not in compliance with certain of the NYSE-MKT continued listing standards as set out in Part 10 of the NYSE-MKT Company Guide and has become subject to the procedures and requirements of Section 1009 of the Company Guide.
Specifically, the Exchange has determined that the Company is not in compliance with Section 1003(a)(iv) of the Company Guide in that it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature.
In order to maintain its Exchange listing, the Exchange requires that the Company provide a plan to the Exchange addressing how it intends to regain compliance with Section 1003(a)(iv) of the Company Guide by August 9, 2013, including specific milestones, details related to any strategic initiatives the Company plans to complete, and quarterly financial projections including income statements, balance sheets and statements of cash flows, in a format similar to financials contained in U.S. Securities and Exchange Commission (“SEC”) filings. The Plan must also include sufficient information for the Exchange to assess the Company’s current compliance with Sections 1002(c) and 1003(c)(i) of the Company Guide, which require that a listed issuer continue to be an operating company. The Exchange’s staff has advised the Company that the Plan must be submitted to the Exchange by July 12, 2013.
The letter states that if the Company submits a Plan, the Exchange will evaluate the Plan and make a determination as to whether the Company has made a reasonable demonstration of an ability to regain compliance with the continued listing standards within the specified timeframe, in which case the Plan will be accepted. If the Plan is accepted, the Company may be able to continue its listing during the Plan period, during which time it will be subject to periodic reviews by the Exchange to determine whether it is making progress consistent with the Plan. If the Company does not submit a Plan, if the Plan is not accepted or if the Plan is accepted but the Company does not make progress consistent with the Plan within the Plan period, the Company will be subject to delisting proceedings.
The letter also states that, pursuant Section 1003(f)(v) of the Company Guide, the Exchange’s staff is concerned that, as a result of its low selling price, the Company’s common shares may not be suitable for auction market trading. The Company is required to remedy the low selling price not later than December 26, 2013.
The Company intends to submit a Plan to the Exchange and to seek continued listing on the Exchange.
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