Fenix's Stock Plummets On Heavy Volume After Delisting Announcement

Shares of Fenix Parts Inc. plummeted 64% to a record low in relatively active afternoon trade Wednesday, after the recycler and resaler of automotive products said its stock would be delisted from the Nasdaq starting Thursday because it has been unable to file its 2016 annual report in a timely manner. Volume was 2.8 million shares, compared with the full-day average of about 141,000 shares. The stock is expected to begin trading on OTC Markets Group's OTC Pink market after the delisting. Separately, Fenix announced an amendment to the agreement with its creditors, in which the lenders will refrain until Aug. 31 from exercising rights with respect to Fenix's noncompliance with certain financial covenants. The agreement also allows the company to add the quarterly interest payment due for the second quarter to the principal amount of debt, and to defer a principal payment of $250,000 that was due Friday to the end of August. The stock, which went public on May 14, 2015 at an IPO price of $8, and closed as high as $11.51 on June 3, 2015, traded recently at 57 cents. It has lost 80% year to date, while the S&P 500 has gained 9%.