Harvey Faces Nasdaq Delisting

By Greg Tarr On Jul 3 2006 - 6:00am

New York-area A/V retailer Harvey Electronics reported it received notice on June 20 that its common stock remains out of compliance with Nasdaq rules and its stock is subject to delisting from the Nasdaq Capital Market.

The chain was originally notified on Dec. 20, 2005, that the minimum bid price of its common stock had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result, did not qualify to be listed by the exchange (according to marketplace rule 4310).

The company was provided 180 calendar days, or until June 19, 2006, to regain compliance with the rule, and failed to meet the initial inclusion criteria, Harvey said in a statement.

Harvey “intends to request” a hearing with Nasdaq and added, “The notice from Nasdaq does not by itself, result in delisting of our common stock if the company by June 27, 2006, requests a hearing with a listing qualifications panel,” the statement said.

Hearings generally are held 30 to 45 days after the request. There can be no assurance that Nasdaq will grant Harvey's request for continued listing.