Greek tanker owner Top Ships will carry out a reverse stock split on Friday to maintain compliance with Nasdaq listing requirements.
The company, led by chief executive Evangelos Pistiolis, said every 12 shares will become one share, reducing the number outstanding to 1.7m from 20.3m.
Top Ships received a notice from the US exchange in April that its stock had traded below the $1 minimum for 30 consecutive days.
Shareholders approved the stock split at a meeting on 5 September.
The share closed down 5.5% in New York on Thursday at $0.59, giving a market cap of just $11.92m, even though Top Ships controls two VLCCs, three suezmaxes and three MR tankers.
The stock had been trading near $10 in October 2022.
A reverse split will boost the price back above $7.
Top Ships had been given 180 days to rectify the situation by the Nasdaq.
At that point in April, the price was $0.74.
Compliance can be regained if the share goes beyond $1 for at least 10 straight days.
A volatile stock
Top Ships had 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.
In the same month, the shipowner pledged not to carry out equity offerings to raise money for expansion this year.
It announced a “moratorium on new equity offerings” until the end of 2023, which is meant to “significantly enhance the trading stability of its common shares”.
Under this moratorium, Top Ships — a frequent user of stock offerings to raise money for growth — said it “will not conduct any new equity offerings, public or private”.
