American Lorain Receives Delisting Warning
The company, based in Linyi City, said it received the notice on April 18 because it reported a deficit in stockholder’s equity of $3.05 million at year-end and had reported net losses in three of its past four years.
American Lorain Corp. (NYSE American: ALN), a small producer of frozen nuts, fruits, and vegetables, has been warned by the stock exchange that it was not in compliance with various requirements and that it was under threat of being delisted.
The company, based in Linyi, said it received the notice on April 18 because it reported a deficit in stockholder's equity of $3.05 million at year-end and had reported net losses in three of its past four years.
In addition, because the company's stock has been trading at a low price per share, the exchange said it would need to complete a reverse stock split or otherwise increase its stock price by Oct. 19.
American Lorain closed today at 17 cents per share, down 5.5 percent.
"We understand our obligations under applicable NYSE rules and intent to fully comply with these requirements," Si Chen, the company's chairman, said in a statement.
Hurt by surging competition, including online ordering platforms, and increasing environmental compliance costs, revenue at the company plunged last year to $5.1 million, down more than 90 percent from $79.7 million in 2016. The company, which primarily produces chestnuts, corn, asparagus, beans, and other fruits and vegetables, lost $63.2 million last year on top of a loss of $87.2 million the year before.
The notification from exchange officials came just a day after American Lorain disclosed that, for its 2017 annual report, its auditor had issued "a going concern" opinion, questioning whether the company would be able to continue operating into the future. The company had also been previously cited by exchange officials because it had fallen out of compliance after failing to hold an annual stockholders' meeting last year.
The company said it had until May 21 to submit a plan to meet NYSE requirements by Oct. 21.