Indianapolis-based Calumet Specialty Products Partners LP on Wednesday said it received a warning from the Nasdaq Stock Market for non-compliance with financial reporting rules.
Nasdaq issued the warning Monday after Calumet failed to issue its third-quarter report as expected on Nov. 10.
Nasdaq said the company had 60 days to submit a plan to regain compliance. If Calumet submits the plan in a timely matter, the company would have until May 8 to regain compliance, otherwise it could be delisted from the market, Nasdaq said.
In a written statement, Calumet said it did not “expect that the submission of a compliance plan will be necessary because the [company] anticipates that it will file the Form 10-Q (quarterly report) prior to the expiration of the 60-day period.”
Calumet announced Nov. 10 that it was “in the later stages of an enterprise resource planning (ERP) system implementation,” which delayed the quarterly report.
“After the launch of our new ERP system on Sept. 1, we encountered challenges that affected our financial reporting capabilities,” Calumet CEO Timothy Go said in a written statement. “As a result, along with the recent closing of our Superior, Wisconsin Refinery divestiture, we are taking additional time to accurately complete our financial statements and permit our external auditor to complete its review procedures.”
Calumet sold the refinery to Calgary, Alberta-based Husky Superior Refining Holding Corp. for $492 million. The deal was announced in August.
Calumet produces about 3,500 specialty products, including lubricating oils, waxes and solvents. It also produces fuel products such as gasoline, diesel, jet fuel and heavy fuel oils.
“While we are disappointed to be experiencing this reporting delay, we are working diligently to provide our third quarter financial results as quickly as possible,” Go said.
Shares in Calumet rose 3 percent Wednesday, to close at $8.20 each, prior to the announcement about the Nasdaq warning.