Stornoway Diamonds faces delisting
Struggling diamond miner Stornoway announced yesterday it is being reviewed by the Toronto Stock Exchange and faces possible delisting.
In its second quarter released earlier this month, Stornoway said it was in a precarious cash position due to the poor diamond market "...and forecasted cash flows will not be sufficient to meet the Corporation's obligations, commitments and budgeted expenditures through June 30, 2020."
As of June, the company estimated that its cash and cash equivalents stood at $21.3 million. These amounts exclude $5.1 million of restricted deposits related to debt service reserve accounts.
During the review process by the TSX, the company has 120 days to comply with regulations.
"There can be no assurance that the Corporation will successfully regain compliance with the TSX listing requirements within this time period, in which case the Corporation's common shares and convertible debentures would cease to trade on the TSX and, as stated in the Corporation's August 14 press release, may not continue to trade on any other trading platform," the company said in a statement.