Lyndhurst, N.J. – Harvey Electronics has been given the O.K. by NASDAQ to continue trading on the over-the-counter stock exchange.
The struggling New York area A/V specialty chain had faced de-listing for failing to maintain NASDAQ’s minimum qualification of $35 million in market value, $2.5 million in stockholder equity or $500,000 in net income for two of the three most recent fiscal years.
Harvey’s continued listing on the exchange is subject to several conditions, including shareholder approval of a proposed reverse stock split and a $4 million cash-for-equity investment led by Trinity Investment Partners. Harvey’s management has said that the cash infusion is critical to the company’s survival. Proxies received to date, representing over 50 percent of all shares, have favored the proposal, the retailer said. The final tally will be taken at Harvey’s annual shareholder meeting on Oct. 27.
In a statement, Harvey chairman Michael Recca said, “We are pleased that [NASDAQ] has allowed Harvey to continue its listing ... The preliminary results of the shareholder vote are encouraging [and] we are now very confident that the proposals will be approved.”