Pacific Ethanol faces delistment from Nasdaq

Published 6:46 am Thursday, September 22, 2011

Pacific Ethanol Inc., which produces ethanol at a plant near Boardman, has again been warned by the Nasdaq stock market that its stock may be delisted due to subpar share prices.

Nasdaq notified the company Sept. 13 that the bid price of its common stock had closed below the minimum $1 per share required to maintain listing, according to a Securities and Exchange Commission filing the same day. 

A company executive expressed optimism Tuesday.

Weve been down this path before and weve been able to maintain, said Paul Koehler, Pacific Ethanol vice president. Weve been able to show were more valuable than that.

Pacific Ethanol, based in Sacramento, Calif., also operates facilities in Burley, Idaho, and in California at Stockton and Madera.

The company stock dipped to 85 cents July 29 and has not risen above a dollar since. Monday it closed at 29 cents. The company share price this year peaked Jan. 5, closing at $7.28, according to the Nasdaq stock report.

Pacific Ethanol has until March 12, 2012, to become compliant. To regain compliance, its bid price must top $1 for 10 consecutive days. 

The plant in Boardman is partly owned by Pacific Ethanol and partly by its former lenders, who became part owners when the company restructured after filing for bankruptcy, said Koehler. 

Pacific Ethanol filed for Chapter 11 bankruptcy protection in May 2009. The company converted its debt into equity to buy back into the plant, a process that somewhat diluted its stock, resulting in dips in bid prices, Koehler said.

Pacific Ethanol just regained its standing with Nasdaq at the end of June, according to a company press release. 

Currently Pacific Ethanol has maintained an ownership position and continues to market the plants and the ethanol, sell the distillers grains and buy the corn, Koehler said.

He said there is no obvious solution to the company woes.

Time at this point, Koehler said. The remedies are many so its not appropriate to suggest one or another at this point in time.