Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As previously disclosed, the Company participated in a hearing before a NASDAQ Hearings Panel (the Hearings Panel) in connection with the Companys late periodic filings, and, on December 1, 2016, the Company received a letter from NASDAQs Office of General Counsel stating that the Hearings Panel granted the Companys request for additional time to file its delinquent reports with the Securities and Exchange Commission (SEC) and regain compliance with NASDAQs continued listing requirements until March 10, 2017.
The Company was not able to file all of its delinquent reports with the SEC and regain compliance with NASDAQs continued listing requirements by the deadline. On March 10, 2017, the Company received a letter from NASDAQ stating that trading of the Companys common stock will be suspended at the opening of business on Tuesday, March 14, 2017. The letter also states that NASDAQ will file a Form 25 with the SEC to formally delist the Companys securities from NASDAQ, to become effective ten days after filing.
The Company currently anticipates that its common stock will be quoted on the Pink OTC Markets Inc. system, referred to as the pink sheets. However, there can be no assurance that a market maker will apply to quote the Companys common stock or that the Companys common stock will become eligible for the pink sheets.
The Company is working diligently to complete its previously announced restatement of prior period financial statements, transition to a new independent registered public accounting firm and conclude its 2015 and 2016 audits so that it will be in a position to bring its SEC filings up to date. The Company intends to seek to relist its common stock on NASDAQ or another national securities exchange as soon as possible once it becomes current in its reporting obligations. There can be no assurance regarding the timing or ultimate outcome of this process or the ability of the Company to relist its common stock on NASDAQ or another national securities exchange.
On March 10, 2017, the Company issued a press release regarding the foregoing matters. A copy of the press release is filed herewith as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
Forward-Looking Statements
Certain matters discussed in this Current Report on Form 8-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on managements current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management. Such forward-looking statements include statements regarding the timing of the timing of the suspension and delisting of the Companys common stock, the timing of the filing of the Companys delinquent periodic reports with the SEC or the timing and ability of the Company to relist its common stock on NASDAQ or another national securities exchange. We caution you not to place undue reliance on any such forward-looking statements. Several factors could cause actual results to differ materially from those expressed in or contemplated by the forward-looking statements. Such factors include, but are not limited to, the identification of additional errors in the restatement process, changes in the scope or focus of the accounting adjustments, the risk that additional information may arise prior to the expected filing with the SEC of the restated financial statements and the 2015 and 2016 financial statements or subsequent events that would require us to make adjustments. Other risk factors affecting the Company are discussed in detail in the Companys filings with the SEC, including its Annual Reports on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.