Vancouver, B.C., August 16, 2019 – Entrée Resources Ltd. (TSX:ETG; NYSE American:EGI – the “Company” or “Entrée”) announced today that on August 12, 2019, the Company received a notice from NYSE American LLC (“NYSE American”) stating that it is not in compliance with the continued listing standards as set forth in Section 1003(a)(i), (ii) and (iii) of the NYSE American Company Guide (the “Company Guide”), which require a company to have stockholders’ equity of $2 million or more if it has reported losses from continuing operations and/or net losses in two of three of its most recent fiscal years; stockholders’ equity of $4 million or more if it has reported losses from continuing operations and/or net losses in three of four of its most recent fiscal years; and stockholders’ equity of $6 million or more if it has reported losses from continuing operations and/or net losses in its five most recent fiscal years. All numbers are in U.S. dollars unless otherwise noted.
NYSE American indicated that a review of the Company shows that it is below compliance with Section 1003(a)(i), (ii) and (iii) since it reported a stockholders’ equity deficit of $(43.9) million as of June 30, 2019 and net losses in its five most recent fiscal years. Accordingly, the Company has become subject to the procedures and requirements of Section 1009 of the NYSE American Company Guide. In order to maintain its listing, the Company must submit a plan of compliance by September 11, 2019 addressing how it intends to regain compliance with the continued listing standards by February 12, 2021. If NYSE American does not accept the plan or the Company does not make progress consistent with the plan or regain compliance with the continued listing standards by February 12, 2021, delisting proceedings will commence.
The Company’s current status and operating strategy are such that implementing a plan to achieve compliance with the above listing standards may not be in the best interests of the Company’s stakeholders. The Company’s Management and Board of Directors has been assessing its options with respect to trading on the NYSE American for some time. Such options may include voluntarily withdrawing its common shares from trading on the NYSE American and applying to trade the Company’s common shares on the OTCQB Venture Market, a potentially more suitable venue for development stage companies, which would result in cost savings and could reduce the negative impact of high levels of high frequency algorithmic trading currently experienced on the NYSE American. The Company remains committed to ensuring that all of its shareholders can seamlessly and efficiently trade the Company’s securities on a trading platform in the United States. The Company’s shares continue to trade on the Toronto Stock Exchange.
The Company will update the market on its plans with respect to its NYSE American listing in due course.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is a well-funded Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world’s largest copper-gold projects – the Oyu Tolgoi project in Mongolia. Entrée has a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi joint venture, depending on the depth of mineralization. Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill are major shareholders of Entrée, holding approximately 19%, 9% and 8% of the shares of the Company, respectively. More information about Entrée can be found at www.EntreeResourcesLtd.com