DRDGOLD, South Africa's fourth largest gold producer, said it would consolidate its share in order to continue trading on Nasdaq.
"We could extend the deadline given to us by Nasdaq but a share consolidation eliminates the problem," said John Sayers in an interview with Miningmx.
In January, Nasdaq gave DRDGOLD about 180 days to get its share trading above $1/share, the minimum level required by the US exchange. Although the deadline could always be extended, DRDGOLD said at the time clarity on its future strategy would bring investors back into the share price.
However, the sale of key assets in its 79%-held Emperor Mines Ltd, listed in Australia, did not improve the share price which is still around 81 US cents/share at the time of writing. DRDGOLD was trading at $1.15/share in December.
"We're the seventh most heavily traded share on Nasdaq so demand is there. But we'll go this route," Sayers said. No shareholder support is required for the share consolidation in which shareholders' shares are replaced with a smaller amount of shares but with a higher par value.
