Diedrich Coffee Receives Deficiency Letter From NASDAQ
October 24 2008 - 4:45PM
PR Newswire (US)
IRVINE, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Diedrich Coffee,
Inc. (NASDAQ:DDRX) today announced that it received a Nasdaq Staff
Deficiency Letter on October 20, 2008 indicating that for the last
thirty consecutive trading days, the Company's common stock has not
maintained a minimum market value of publicly held shares (MVPHS)
of $5 million, and as a result, the Company does not comply with
the MVPHS requirement for continued listing on the NASDAQ Global
Market as set forth in NASDAQ Marketplace Rule 4450(a)(2). In light
of extraordinary market conditions, NASDAQ has suspended
enforcement of the bid price and MVPHS requirements through January
16, 2009. These rules will be reinstated on Monday, January 19,
2009. Upon reinstatement, and in accordance with NASDAQ Marketplace
Rule 4450(e)(1), the Company will have until April 20, 2009 to
comply with Rule 4450(a)(2), which is demonstrated by the Company's
MVPHS equaling or exceeding $5 million for a minimum of 10
consecutive trading days. As described in the Company's press
release issued on October 15, 2008, the Company received a staff
deficiency letter on October 10, 2008 with respect to the Company's
non-compliance with the minimum stockholders' equity requirement of
$10 million as set forth in NASDAQ Marketplace Rule 4450(a)(3). As
previously disclosed, the Company is in the process of preparing a
response to NASDAQ's request for a plan to achieve and sustain
compliance with NASDAQ Global Market listing requirements. About
Diedrich Coffee With headquarters in Irvine, California, Diedrich
Coffee specializes in sourcing, roasting and selling the world's
highest quality coffees. The Company's three brands are Diedrich
Coffee, Gloria Jean's Coffees and Coffee People. Diedrich Coffee
sells its coffees through wholesale accounts including office
coffee service distributors, restaurants and specialty retailers,
and via the Company's web stores. As of June 25, 2008, the Company
also has 123 retail outlets, the majority of which are franchised,
located in 28 states. For more information about Diedrich Coffee,
call (800) 354-5282, or visit the Company's web sites at
http://www.diedrich.com/ or http://www.gloriajeans.com/. Forward
Looking Statements Statements in this news release that relate to
future plans, financial results or projections, events or
performance are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and fall
under the safe harbor. Actual results and financial position could
differ materially from those anticipated in the forward-looking
statements as a result of a number of factors, including, but not
limited to, the financial and operating performance of the
Company's wholesale operations, the Company's ability to maintain
profitability over time, the successful execution of the Company's
growth strategies, franchisee's adherence to the Company's
practices, policies and procedures, the impact of competition, the
availability of working capital, and other risks and uncertainties
described in detail under "Risk Factors and Trends Affecting
Diedrich Coffee and its Business" in the Company's annual report on
Form 10-K for the fiscal year ended June 25, 2008. Information
Contact: Sean McCarthy Chief Financial Officer (949) 260-6734
DATASOURCE: Diedrich Coffee, Inc. CONTACT: Sean McCarthy, Chief
Financial Officer of Diedrich Coffee, Inc., +1-949-260-6734 Web
site: http://www.diedrich.com/ http://www.gloriajeans.com/
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