Lyndhurst, N.J. – New York City-area specialty AV electronics chain Harvey Electronics said 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, to regain compliance with the rule, and failed to meet the initial inclusion criteria, Harvey said in a statement.
"However, the notice from Nasdaq does not by itself, result in delisting of our common stock if the company by June 27, requests a hearing with a listing qualifications panel," the statement said. "The company intends to request a hearing on the staff's determination to a Nasdaq Listing Qualifications Panel. The hearing request will stay the delisting of the stock pending the panel's review and determination."
Hearings generally are held 30-45 days after the request. There can be no assurance that the Listing Qualifications Panel will grant Harvey's request for continued listing.
"If the company is unsuccessful, we may appeal any adverse decision of the panel to the Nasdaq Listing and Hearing Review Council," Harvey said. "Any such appeal by the company would not stay the ruling of the Listing Qualifications Panel. Should the stock be delisted from the Nasdaq Capital Market, the company will consider alternatives to the Nasdaq listing."
Harvey's Chief Executive Officer, Franklin Karp, stated, "Nasdaq has raised important issues which we do not take lightly. We continue to do what we believe is in the best interests of our shareholders, customers and employees.
"The hearing will give us the opportunity to fully inform Nasdaq of the current status of our company, our plans for the future, including the proposed $4 million financing which will be voted on by our shareholders soon, and our views regarding our stock price. We intend to make a compelling presentation to the Listing Qualifications Panel to try to maintain our listing."