Hoku could declare bankruptcy, ‘wind down’ company
The public trading of Hoku stock was halted Thursday morning, after NASDAQ made a request for “additional information” from the company.
The last price of the stock was 10 cents.
Hoku has just five days before it is removed completely from NASDAQ, because of the company’s failure to comply with a NASDAQ requirement. In January, the company was given 180 days to get its stock price back up to the required $1 per share and to keep it there for at least 10 consecutive days, and that has not happened.
This comes after Hoku asked for an exception from the U.S. Securities and Exchange Commission, saying the company didn’t have enough money to file its annual report earlier this year.
As this station reported earlier this year, Hoku said the company was restructuring, but this filing said the restructuring might happen in the form of declaring bankruptcy. The company is working with Imperial Capital to try to find additional investors, but according to the filing, if the company is unable to find more money, “it believes it will need to seek protection in bankruptcy from its creditors and to liquidate and wind-down Hoku and Hoku Materials.”
A company representative could only make the following statement Thursday: “The company is now working closely with NASDAQ; more detailed information regarding Hoku Corp’s listing on the stock market and restructuring efforts will be provided through public disclosures in the near future.”
The filing also states that since June 15, Hoku has failed to make $275,000 in scheduled interest payments in its credit agreements, and the filing said it may never be able to make those payments.
