HOUSTON, Sept. 9, 2016 /PRNewswire/ -- Glori Energy
Inc. (Nasdaq: GLRI) ("Glori" or the "Company") today
announced that it has submitted a notice to The Nasdaq Stock Market
LLC ("Nasdaq") of its intention to voluntarily withdraw the
Company's common stock from listing on Nasdaq and to voluntarily
terminate the registration of common stock under Section 12(b) of
the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). The Company intends to continue to file periodic reports on
Forms 10-K, 10-Q and 8-K with the Securities and Exchange
Commission pursuant to the requirements of Section 15(d) of the
Exchange Act.
As previously disclosed, on August 18,
2016, the Company received a deficiency letter (the
"Notice") from Nasdaq indicating that the Company's stockholders'
equity as of June 30, 2016 did not
meet the minimum $2.5 million
requirement of Listing Rule 5550(b)(1) that is necessary to
maintain continued listing on the Nasdaq Capital Market. The
Notice stated that the Company also did not, at that time, meet the
market value of listed securities or net income from continuing
operations standards that are alternatives to the stockholders'
equity requirement. The Company was given 45 days from the date of
the Notice to submit a plan to regain compliance. The Notice and
the deficiencies identified therein were in addition to the
Company's previously disclosed non-compliance with the minimum
$1.00 bid price per share requirement
under Listing Rule 5550(a)(2), which the Company initially reported
on October 23, 2015. The Company had
until October 17, 2016 to regain
compliance with this requirement.
After considering a number of factors, including the likely
expenses and uncertainty associated with seeking to regain
compliance with and raise capital while subject to Nasdaq's Listing
Rules and the ongoing costs of maintaining such compliance, the
Company's Board of Directors unanimously determined to (i)
voluntarily delist from the Nasdaq, (ii) deregister the Company's
common stock under Section 12(b) of the Exchange Act, and (iii)
take the actions necessary for the Company to be traded on one of
the OTC Market Group trading systems.
Kevin Guilbeau, Glori's Executive
Chairman and CEO stated, "Regardless of which exchange Glori trades
on, our objectives remain the same. Our plan is to continue to
pursue our Phoenix initiative,
which consists of acquiring abandoned oil fields that have
significant amounts of oil remaining in place. We have begun
selectively leasing acreage in one such non-producing oil field
that we believe has excellent reservoir qualities and contains
significant amounts of unrecovered oil. We plan to apply a standard
waterflood operation coupled with our AERO technology to unlock
these left-behind reserves.
"To help shore up our liquidity and fund certain up-front costs
necessary to complete the leasing and development plan for our
first Phoenix project, we are in
discussions with investors for a modest capital raise at the Glori
corporate level. We are also evaluating project financing
options to execute the development of the first project. We
are optimistic that certain financing is available, but at this
point we cannot give any assurances that we will be successful nor
whether we will be able to negotiate acceptable terms. Our
optimism is based on the quality of our first Phoenix project, which appears to be quite
robust, and we anticipate it could provide the catalyst for a
financing at both the corporate level as well as the asset level.
Additionally, as we previously reported, we expect to learn in the
next 30 to 60 days if our DOE Part II application is approved and
accepted for underwriting. If the loan guarantee is not approved,
or if we determine the final terms are not advantageous to the
company, we plan to pursue alternative project financing.
"Although we are in the process of withdrawing our Nasdaq
listing and moving to the Over-The-Counter market, at a later date,
we can re-apply for listing when we are able to meet the Nasdaq
requirements. We believe that delisting from Nasdaq at this time
will result in lower administrative expenses and will enable
management to focus its time and resources on operating the Company
and enhancing shareholder value."
The Company intends to file a Notification of Removal from
Listing and/or Registration on Form 25 with the Securities Exchange
Commission ("SEC") on or after September 19,
2016, as a result of which the Company expects the common
stock will cease to be listed on Nasdaq on or about September 29, 2016. The Company anticipates that
the common stock will be immediately traded on one of the trading
platforms operated by OTC Market Group following
delisting.
ABOUT GLORI ENERGY INC.
Glori Energy is a Houston-based
energy technology and oil production company that deploys its
proprietary AERO technology to increase the amount of oil that can
be produced from conventional oil fields. Glori owns and operates
oil fields onshore U.S. and additionally provides its technology as
a service to E&P companies globally. Only one-third of all oil
discovered in a typical reservoir is recoverable using conventional
technologies; the rest remains trapped in the rock. Glori's
proprietary AERO System recovers residual oil by stimulating a
reservoir's native microorganisms to sustainably increase the
ultimate recovery at a low cost. For more information, visit
www.glorienergy.com.
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. This report contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that involve risks,
uncertainties and assumptions that are difficult to predict. Words
such as "will," "may," "could," "intends," "potential," "appears,"
"anticipate," "plan," "expect," "believe," and similar expressions,
or the use of future tense, identify forward-looking statements,
but their absence does not mean that a statement is not
forward-looking. Such forward-looking statements involve risks, are
not guarantees of performance and actual actions or events could
differ materially from those contained in such statements. For
example, there can be no assurances as to the Company's future
results of operations, future acquisitions, the approval of the DOE
application, our ability to raise capital or obtain additional
financing, that the Company will be successful in listing its
common stock for sale on one of the OTC Market Group's trading
systems or that the Company will successfully complete the
delisting and deregistration of its common stock under the Exchange
Act and any future re-listing on Nasdaq. Other risk factors are
discussed in Item 1A "Risk Factors" and Item 7 "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our Annual Report on Form 10-K for the 2015 fiscal
year and our subsequent Quarterly Reports on Form 10-Q for
2016. The forward-looking statements contained in this report
speak only as of the date of this report and the Company undertakes
no obligation to publicly update any forward-looking statements to
reflect changes in information, events or circumstances after the
date of this report, unless required by law.
Glori Energy Contact
Victor M. Perez
Chief Financial Officer
713-237-8880
ir@glorienergy.com
Investor Relations Counsel
Lisa Elliott/ Anne
Pearson
Dennard-Lascar Associates
713-529-6600
lelliott@DennardLascar.com
apearson@DennardLascar.com
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SOURCE Glori Energy Inc.