US-listed UK mining firm American Resources Corporation (ARC) has received a non-compliance notice from the Nasdaq stock exchange. The notice was issued on 31 May, citing ARC's failure to meet the exchange's listing requirements, specifically the minimum bid price requirement.
According to Nasdaq's rule 5450, listed companies must maintain a minimum bid price of $1 per share. ARC's stock price has fallen below this threshold, prompting the non-compliance notice. The company has 45 days from the date of the notice to regain compliance.
The notice has sparked concerns among investors, with some speculating that ARC may face delisting from Nasdaq if the issue is not resolved. ARC's stock price has fallen significantly in recent months, amid a broader decline in the global mining sector.
The UK Government has been monitoring the situation, with Business Secretary Kemi Badenoch acknowledging the importance of maintaining a strong listing presence for UK companies on international exchanges. 'We will continue to work with UK companies to ensure they have the necessary support to succeed on global markets,' she said in a statement.
The opposition Labour Party has also weighed in on the issue, with Shadow Business Secretary Jonathan Reynolds calling for greater support for UK businesses. 'This is a reminder of the importance of investing in UK businesses and supporting them to succeed on global markets,' he said.
ARC has not yet commented on the non-compliance notice, but is expected to provide an update in the coming days.