Orion Lighting Provided 180 days – until May 29, 2018 - to Regain Compliance with Nasdaq $1.00 Minimum Closing Bid Price Ru...
December 01 2017 - 4:15PM
Orion Energy Systems, Inc. (NASDAQ:OESX) (Orion Lighting), a
leading designer and U.S. manufacturer of high-performance,
energy-efficient LED lighting products, announced today it has
received a continued listing deficiency notice from The Nasdaq
Stock Market LLC because its share price has not met the $1.00
minimum closing bid price requirement for 30 consecutive business
days [Nasdaq Listing Rule 5550(a)(2) and 5810(c)(3)(A)]. This
notice has no immediate effect on the Company’s Nasdaq listing or
the trading of its common stock.
Nasdaq has provided Orion with a 180-day period, until May 29,
2018, in which to regain compliance with the minimum bid price
requirement. If at any time during the compliance period, the
closing bid price of Orion’s common stock is at least $1.00 per
share for a minimum of ten consecutive business days, Nasdaq will
provide Orion with a written confirmation of compliance and the
matter will be closed.
Orion CEO, Mike Altschaefl, commented, “The Board and I believe
that Orion’s recent share price and modest market cap of roughly
0.4x sales for the last four quarters are a reflection of our past
challenges and the transition of our business focus, rather than
our growth and profitability goals for the remainder of the fiscal
year ending March 31, 2018. We are confident that as we demonstrate
progress toward our goals over the next four months, our
performance should enhance Orion’s share price and market value and
enable the Company to regain compliance with Nasdaq’s minimum bid
price requirement before May 29, 2018.”
Mr. Altschaefl added, “I have focused the first six months of my
tenure as CEO on working to put Orion on a path to sustainable
growth and improved bottom-line results. We have largely
repositioned the business to achieve those goals. We are confident
that as we demonstrate results, our share price should better
reflect Orion’s future prospects and support our regaining
compliance with Nasdaq’s minimum $1.00 closing bid price rule.”
Potential Second 180-Day Compliance
PeriodShould Orion not regain compliance with the bid
price requirement by May 29, 2018, it may be eligible for an
additional 180-day compliance period if it meets the market value
of publicly held shares requirement for continued listing, all
other initial inclusion requirements for The Nasdaq Capital Market,
except for the bid price requirement, and provides written notice
that it intends to regain compliance with the bid price requirement
during the second 180-day compliance period by effecting a reverse
split, if necessary.
About Orion Energy SystemsOrion is a leading
designer and producer of energy efficient lighting and retrofit
lighting solutions for commercial and industrial buildings. Orion
manufactures and markets connected lighting systems encompassing
LED solid-state lighting and smart controls. Orion systems
incorporate patented design elements that deliver significant
energy, efficiency, optical and thermal performance that drive
financial, environmental, and work-space benefits for a wide
variety of customers, including nearly 40% of the Fortune 500.
Safe Harbor
Statement Certain matters
discussed in this press release are "forward-looking statements"
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may generally be identified as such
because the context of such statements will include words such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "potential," "predict," "project," "should," "will,"
"would" or words of similar import. Similarly, statements that
describe the Company's future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties that could cause results
to differ materially from those expected, including, but not
limited to, the following: (i) our ability to achieve our expected
revenue growth, gross margin and EBITDA objectives in fiscal 2018
and beyond; (ii) our ability to achieve profitability and positive
cash flows; (iii) our levels of cash and our limited borrowing
capacity under our revolving line of credit; (iv) the availability
of additional debt financing and/or equity capital; (v) our
increasing emphasis on selling more of our products through third
party distributors and sales agents, including our ability to
attract and retain effective third party distributors and sales
agents to execute our sales model; (vi) our ability to develop and
participate in new product and technology offerings or applications
in a cost effective and timely manner; (vii) our ability to manage
the ongoing decreases in the average selling prices of our products
as a result of competitive pressures in the evolving LED market;
(viii) our ability to manage our inventory and avoid inventory
obsolescence in a rapidly evolving LED market; (ix) our lack of
major sources of recurring revenue and the potential consequences
of the loss of one or more key customers or suppliers, including
key contacts at such customers; (x) our ability to adapt to
increasing convergence in the LED market; (xi) our ability to
differentiate our products in a highly competitive market; (xii)
the deterioration of market conditions, including our dependence on
customers' capital budgets for sales of products and services;
(xiii) our ability to complete and execute our strategy in a highly
competitive market and our ability to respond successfully to
market competition; (xiv) our increasing reliance on third parties
for the manufacture and development of products and product
components; (xv) our ability to successfully implement our strategy
of focusing mainly on lighting solutions using LED technologies;
(xvi) the market acceptance of our products and services; (xvii)
our ability to realize expected cost savings on the timetable and
amounts expected from our cost reduction initiatives; (xviii)
adverse developments with respect to litigation and other legal
matters pursuant to which we are subject, including the ongoing
litigation initiated against us by our former chief executive
officer; (xix) our failure to comply with the covenants in our
revolving credit agreement; (xx) our fluctuating quarterly results
of operations as we focus on new LED technologies and continue to
focus investing in our third party distribution sales channel;
(xxi) our ability to recruit, hire and retain talented individuals
in all disciplines of our company; (xxii) price fluctuations,
shortages or interruptions of component supplies and raw materials
used to manufacture our products; (xxiii) our ability to defend our
patent portfolio; (xxiv) a reduction in the price of electricity;
(xxv) the cost to comply with, and the effects of, any current and
future government regulations, laws and policies; (xxvi) potential
warranty claims in excess of our reserve estimates; (xxvii) our
inability to timely and effectively remediate any material
weaknesses in our internal control of financial reporting and/or
our failure to maintain an effective system of internal control
over financial reporting and (xxviii) the other risks described in
our filings with the SEC. Shareholders, potential investors
and other readers are urged to consider these factors carefully in
evaluating the forward-looking statements and are cautioned not to
place undue reliance on such forward-looking statements. The
forward-looking statements made herein are made only as of the date
of this press release and the Company undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise. More detailed
information about factors that may affect our performance may be
found in our filings with the Securities and Exchange
Commission, which are available at http://www.sec.gov or
at http://investor.oriones.com/ in the Investor Relations
section of the Company's Web site.
Twitter:
@OrionLighting
and @OrionLightingIRStockTwits:
@Orion_LED_IR
Investor Relations Contacts:
Bill Hull, CFOOrion Energy Systems, Inc.(312) 660-3575 or
ir@oesx.com William Jones; Tanya
KamatuCatalyst IR(212) 924-9800 or oesx@catalyst-ir.com
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