Greek owners Castor Maritime and Top Ships will try to boost their share prices to regain compliance with Nasdaq listing requirements.
Both companies received letters within a day of each other putting them on notice that the stocks have been trading below the $1 minimum for 30 consecutive days.
The shipowners have 180 days to rectify the situation.
Top Ships, which has a fleet of VLCCs, suezmaxes and MR tankers, said it can cure the complaint if the stock goes beyond $1 for at least 10 straight days during that time.
The share closed at $0.74 on Tuesday, down nearly 6% and off from $15.60 in the last year.
“The company intends to monitor the closing bid price of its common stock … and is considering its options, including a reverse stock split, in order to regain compliance with the Nasdaq Capital Market minimum bid price requirement,” the owner added.
Bulker and container ship owner Castor Maritime made similar comments.
Its share price was $0.71 on Tuesday, down 4%. In 2019, it was $25.
“In the event the company does not regain compliance within the grace period and meets all other listing standards and requirements, the company may be eligible for an additional 180-day grace period,” the owner added.
Both companies, which are very profitable, have been involved in dilutive stock issues arranged by investment bank Maxim Group to expand their fleets.
A volatile stock
Top Ships has previously warned of the volatility of its shares. In one day in March, it saw a 30% spike as bosses issued a positive update on its valuation.
Management said the net asset value was estimated at $286m, or $5.27 per share, at that time.
Top Ships produced record net income of $18.9m last year — more than double the $8.6m profit in 2021, when it reversed a $22.8m loss from 2020.
Between its launch in 2019 and December 2021, Castor Maritime spent nearly $400m on secondhand tonnage in deals that catapulted its fleet to 29 ships — 20 bulkers and nine tankers.
Two sub-panamax container ships were added in 2022.
