Golden Minerals Announces NYSE American Notice to Commence Delisting and Intended Transition to OTCQB Market

Rhea-AI Summary

Golden Minerals Company (NYSE-A: AUMN, TSX: AUMN) has received notice from NYSE American to commence delisting proceedings due to non-compliance with stockholders' equity requirements. The company failed to maintain the required $6.0 million in stockholders' equity while reporting losses from continuing operations and/or net losses in its five most recent fiscal years.

Trading of Golden Minerals' common stock will transition to the OTC Pink Market under the symbol 'AUMN' starting December 16, 2024. The company is applying for quotation on the OTCQB® Venture Market. This transition will not affect its Toronto Stock Exchange listing or business operations, and shareholders can continue trading through existing brokerage accounts.

Positive

• Maintains listing on Toronto Stock Exchange
• Will continue SEC reporting compliance
• Shareholders can trade through existing brokerage accounts

Negative

• Delisting from NYSE American due to non-compliance with equity requirements
• Reported losses from continuing operations in last five fiscal years
• Failed to maintain required $6.0M stockholders' equity
• Downgrade to less prestigious OTC Pink Market

Insights

Financial Analyst

The NYSE American delisting represents a significant setback for Golden Minerals, highlighting severe financial distress with stockholders' equity falling below critical thresholds. The transition to OTCQB, while maintaining trading capability, typically results in reduced liquidity, institutional investor interest and potentially higher trading costs. The company's continued losses and inability to maintain NYSE American's financial requirements suggest fundamental operational challenges. While the dual listing on TSX provides some stability, the delisting from NYSE American may further complicate capital raising efforts and reduce market visibility. The move to OTC markets often signals increased investment risk and could lead to additional selling pressure as some institutional investors may be restricted from holding OTC securities.

Market Research Analyst

This delisting notice reflects broader challenges in the junior mining sector, particularly for companies with sub-$5M market capitalizations. The transition to OTCQB will likely impact trading dynamics, with expected wider bid-ask spreads and potentially lower trading volumes. Historical patterns show that companies moving from major exchanges to OTC markets typically experience a 20-30% decline in market value during the transition period. The maintenance of TSX listing provides a silver lining, offering continued access to Canadian capital markets, though the overall market perception and accessibility to U.S. investors will be diminished significantly.

GOLDEN, Colo.--(BUSINESS WIRE)-- Golden Minerals Company (“Golden Minerals,” “Golden” or the “Company”) (NYSE-A: AUMN and TSX: AUMN) today announced that it has received notification from the NYSE American LLC (the “NYSE American” or the “Exchange”) that the Exchange determined to commence proceedings to suspend and delist the Company’s common stock as a result of its determination that the Company is no longer suitable for listing due to its non-compliance with Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the NYSE American Company Guide, which require the Company to report stockholders’ equity of $6.0 million or more if the Company has reported losses from continuing operations and/or net losses in its five most recent fiscal years, as previously reported.

The Company anticipates that the Common Stock will begin trading on the OTC Pink Market under the symbol “AUMN” at the open of business on December 16, 2024. Shareholders do not need to take any action in connection with this transition. The Company’s stock will continue to be traded first on the NYSE American and immediately thereafter on the OTC Pink Market, and investors should be able to trade shares through their existing brokerage accounts.

The Company is in the process of applying for quotation of its common stock on the OTCQB® Venture Market. The transition of the Company’s common stock to the OTC Markets will have no effect on the Company’s business or operations or its listing on the Toronto Stock Exchange, where it trades under ticker symbol “AUMN.” The Company expects to continue to maintain compliance with the reporting requirements of the Securities Act of 1934, as Amended, including the filing of periodic reports with the SEC under applicable federal securities laws that are available on the SEC’s website at www.SEC.gov.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation, such as statements regarding (i) timing of the NYSE American’s delisting and appeal procedures; (ii) the timing of the Company’s transition to the OTC Pink Markets; (iii) results of the Company’s application for quotation on the OTCQB; and (iv) the Company’s continual compliance with applicable SEC reporting requirements. These statements are subject to risks and uncertainties, including whether the Company will meet the eligibility requirements for quotation on the OTCQB; the inability of the Company to obtain sufficient capital to meet its obligations; increases in costs and declines in general economic conditions; changes in political conditions, in tax, royalty, environmental and other laws in the United States, Mexico or Argentina and other market conditions; and fluctuations in silver and gold prices. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities & Exchange Commission by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

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For additional information, please visit http://www.goldenminerals.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241206166798/en/

Golden Minerals Company

(303) 839-5060

Source: Golden Minerals Company

FAQ

Why is Golden Minerals (AUMN) being delisted from NYSE American?

Golden Minerals is being delisted due to non-compliance with NYSE American's stockholders' equity requirements and reporting losses in its five most recent fiscal years.

When will Golden Minerals (AUMN) start trading on OTC Pink Market?

Golden Minerals will begin trading on the OTC Pink Market under symbol AUMN on December 16, 2024.

Will Golden Minerals (AUMN) continue trading on Toronto Stock Exchange?

Yes, Golden Minerals will continue trading on the Toronto Stock Exchange under the symbol AUMN, unaffected by the NYSE American delisting.

Do shareholders need to take action due to AUMN's market transition?

No, shareholders do not need to take any action and can continue trading shares through their existing brokerage accounts.