NEW YORK (TheStreet) -- Shares of Paragon Shipping (PRGN) are plunging by 36.39% in mid-afternoon trading on Thursday, after Nasdaq sent the company a notice of non-compliance since its shareholders' equity fell below the minimum $2.5 million requirement.
The company has consequently decided to move its common stock listing to the OTC Markets' OTCQB Venture Market. It expects to begin trading under the symbol PRGNF on June 6.
The board's decision to move Paragon Shipping's listing indicates that the company is unlikely to regain compliance with the minimum stockholders' equity requirement within Nasdaq's time frame, according to a company statement.
Paragon Shipping is a provider of shipping transportation services based in Greece.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.
Paragon Shipping's weaknesses include its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: PRGN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.