(Bloomberg) — Advanced Emissions Solutions Inc., a
developer of clean-coal technologies, fell the most since 2003
after saying KPMG LLP had resigned as the company’s accounting
Advanced Emissions tumbled 46 percent to $10.61 at the
close in New York. Earlier it declined 51 percent, the most
intraday since Oct. 23, 2003. KPMG told the company that it had
“inadequate management oversight” over financial reporting and
“inadequate accounting resources,” according to a filing
Thursday with the U.S. Securities and Exchange Commission.
KPMG resigned on Jan. 23, according to the filing.
Highlands Ranch, Colorado-based Advanced Emissions, which is
seeking a new accountant, said it expects to have its shares
delisted from the Nasdaq because it “does not believe that it
can make the required financial filings and regain compliance.”
Jeffrey Osborne, an analyst with Cowen & Co. in New York,
downgraded Advanced Emissions to the equivalent of hold,
lowering his 12-month price target to $15 from $35.
“While we believe the company has compelling technology
solutions, the lack of transparency in financial statements”
and ongoing accounting issues “gives us pause,” Osborne said
in a note to investors on Thursday. “At this point, we would
recommend investors move to the sideline and wait for the dust
Graham Mattison, an Advanced Emissions spokesman, and KPMG
spokeswoman Deborah Primiano had no immediate comment.
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Justin Doom in New York at
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