Web exclusive posted March 24, 2009, at 5:04 p.m. CST
Pekin, Ill.-based ethanol producer and marketer
Aventine Renewable Energy Holdings Inc. announced that its common stock will be moved from the New York Stock Exchange to the over-the-counter (OTC) markets beginning March 30. The company said it expects its stock will continue to be actively traded on the pink sheets and is taking appropriate steps to be quoted on the OTC Bulletin Board (OTCBB).
The move from the NYSE to the OTC markets is due to the company's current low market capitalization. According to the NYSE, Aventine's market capitalization fell below its $15 million required level for 30 consecutive days. The NYSE recently relaxed the rule from $25 million because of commodity price volatility and decline in demand. Previously, Aventine's stock had been trading below the NYSE's statutory ceiling of a minimum average closing price of $1.00 per share since November 2008.
Aventine's NYSE ticker symbol "AVR" will be discontinued and a new OTC ticker symbol will be issued. Although the company's common shares will be changing markets, the transition to the OTC market will have no effect on the shares themselves or the company's filing obligations to the U.S. Securities and Exchange Commission.
On March 16, Aventine reported a net loss of $36.9 million in its fourth quarter 2008 earnings report and said it may need to seek Chapter 11 bankruptcy protection if it cannot raise enough cash in the very near-term. (Read
"Aventine reports $36.9 million quarterly loss.")
In February, Ajay Sabherwal resigned as chief financial officer of Aventine to pursue other opportunities. Sabherwal had served as the company's CFO since November 2005.