Performance Shipping Inc. Announces Receipt of Nasdaq Notice

Rhea-AI Summary

Performance Shipping Inc. (NASDAQ: PSHG) disclosed on April 21, 2023, that it has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The Company’s common stock has been trading below the $1.00 per share mark for 30 consecutive business days, from March 6 to April 17, 2023. Nasdaq's listing rules provide a 180-day grace period, expiring on October 16, 2023, for the company to regain compliance. To remedy this, PSHG aims to maintain a bid price of at least $1.00 for ten consecutive business days. If unsuccessful, the Company might qualify for an additional grace period, provided that it meets other listing standards. During this period, the stock will remain listed and trading on Nasdaq without impacting the Company’s operations.

Positive

• The Company intends to actively monitor its stock price and consider options to regain compliance.
• There is a possibility of an additional 180-day grace period if other listing standards are met.

Negative

• The stock has been below the required minimum bid price for 30 consecutive business days, which raises compliance concerns.
• If compliance is not achieved, the Company may face delisting from Nasdaq.

ATHENS, Greece, April 21, 2023 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced today that it has received written notification from The Nasdaq Stock Market LLC (“Nasdaq”) dated April 18, 2023, indicating that because the closing bid price of the Company's common stock for 30 consecutive business days, from March 6, 2023 to April 17, 2023, was below the minimum $1.00 per share bid price requirement for continued listing on The Nasdaq Capital Market, the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2). Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the applicable grace period to regain compliance is 180 days, or until October 16, 2023.

The Company can cure this deficiency if the closing bid price of its common stock is $1.00 per share or higher for at least ten consecutive business days during the grace period. In the event that the Company does not regain compliance with the minimum bid price requirement within the 180 day grace period, the Company may be eligible for an additional 180 day grace period to regain compliance. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary.

The Company intends to cure the deficiency within the prescribed grace period. The Company will monitor the closing bid price of its common stock during this grace period and will consider its options. During this time, the Company's common stock will continue to be listed and trade on the Nasdaq Capital Market. The Company's business operations are not affected by the receipt of the notification.

About the Company

Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements and on time charters.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts, including statements regarding the implementation of the Plan.

The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,” “continue,” “possible,” “might,” “pending” and similar expressions, terms or phrases may identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to vessels we agree to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including the ongoing outbreak of the novel coronavirus (COVID-19) and its impact on the demand for seaborne transportation of petroleum and other types of products, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

FAQ

What does the Nasdaq notification mean for Performance Shipping Inc. (PSHG)?

The notification indicates that PSHG's stock price has been below the $1.00 minimum bid price for 30 consecutive days, affecting its compliance status.

What is the grace period for PSHG to regain compliance with Nasdaq?

PSHG has a 180-day grace period until October 16, 2023, to bring its stock price above $1.00.

What steps can PSHG take to address the Nasdaq compliance issue?

PSHG can maintain a closing bid price of $1.00 or higher for at least ten consecutive business days or opt for a reverse stock split.

Will PSHG's business operations be affected by the Nasdaq notification?

No, the notification does not impact the Company's ongoing business operations.