RedEnvelope, Inc. to Apply for Transfer to Nasdaq Capital Market
February 25 2008 - 5:00PM
PR Newswire (US)
SAN FRANCISCO, Feb. 25 /PRNewswire-FirstCall/ -- RedEnvelope, Inc.
(NASDAQ:REDE) announced today that it is applying to transfer its
Nasdaq listing from the Nasdaq Global Market to the Nasdaq Capital
Market. The Company no longer meets the continued listing standards
for the Nasdaq Global Market because, as reported in its Form 10-Q
for the quarter ended December 30, 2007, the Company no longer
satisfies the $10 million stockholders' equity requirement set
forth in Marketplace Rule 4405(a)(3). The Company received a Staff
Deficiency Letter from the Nasdaq Stock Market regarding its
failure to meet the minimum stockholders' equity requirement on
February 19, 2008. After evaluating the Staff Deficiency Letter,
the Company determined that at this time it was more advantageous
to pursue a transfer to the Nasdaq Capital Market than attempt to
maintain its listing on the Nasdaq Global Market because the
Company meets the continued listing requirements for the Nasdaq
Capital Market, the proceedings involved in attempting to maintain
the Company's Nasdaq Global Market listing are costly, time
consuming and a distraction to management, listing on the Nasdaq
Capital Market will result in a minor cost savings for the Company
and the Company does not believe that stockholders' liquidity will
be adversely impacted by a transfer to the Nasdaq Capital Market.
About RedEnvelope, Inc. RedEnvelope, Inc. is a retailer dedicated
to inspiring people to celebrate their relationships through
giving. RedEnvelope offers an extensive collection of imaginative
gifts through its webstore, http://www.redenvelope.com/.
"RedEnvelope" is a registered trademark of RedEnvelope, Inc. This
press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. The
forward-looking statements contained in this press release include,
among others, statements regarding the Company's ability to
transfer its listing to the Nasdaq Capital Market, the cost savings
and other benefits associated with the proposed transfer, the
Company's ability to meet the continued listing requirements for
the Nasdaq Capital Market and the impact of the transfer on
stockholders' liquidity. Such statements are based upon current
expectations and involve risks and uncertainties. The Company's
actual results and the timing of events could differ materially
from those anticipated in these forward-looking statements as a
result of several factors. Factors that could affect future
performance include, but are not limited to: any failure to address
the Company's funding requirements and continue as a going concern;
marketing, advertising and customer acquisition programs and
related expenditures may not achieve desired results; cost-control
measures may fail to yield satisfactory results; failure of the
market to accept the Company's new or existing products and
competition relating to such products; planned and ongoing
fulfillment center and system upgrades and enhancements could fail
to achieve desired results or cost savings or could take longer or
incur greater costs than anticipated to implement; difficulties
encountered in, or increased costs of, fulfillment; economic
conditions and changes in consumer spending levels; any significant
disruption of the Company's operations due to network or systems
failures or disruptions, power outages, regulatory actions, natural
disasters or attacks; difficulties encountered in predicting
consumer preferences, managing inventory levels or gaining access
to popular products; increased or more effective competition from
other retailers; difficulties encountered in managing the Company's
growth; increased costs for, or delays or difficulties in the
receipt of, merchandise ordered by the Company; seasonality of the
retail business; increases in shipping, advertising or marketing
costs; intellectual property or other claims that may have an
adverse effect on the Company's financial results product offerings
or technology; difficulties encountered in properly staffing the
Company's operations or providing satisfactory customer service;
changes in government or regulatory requirements affecting
e-commerce that may restrict, or increase the cost of, the
Company's operations; the delisting of the Company's common stock
from the Nasdaq Global Market and other risk factors described in
detail in our Report on Form 10-K for the fiscal year ended April
1, 2007 and Quarterly Report on Form 10-Q for the period ended
December 30, 2007, including, without limitation, those discussed
under the caption, "Risk Factors," which documents are on file with
the Securities and Exchange Commission (the "SEC") and available at
the SEC's website at http://www.sec.gov/. These forward-looking
statements are made only as of the date of this press release, and
RedEnvelope undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise. The lack of any update or revision is
not intended to imply continued affirmation of forward-looking
statements contained herein. Investor Contact: Andrew
Greenebaum/Christine Lumpkins ICR, Inc. ; (310) 954-1100
DATASOURCE: RedEnvelope, Inc. CONTACT: Andrew Greenebaum, , or
Christine Lumpkins, , both of ICR, Inc., +1-310-954-1100, for
RedEnvelope, Inc. Web site: http://www.redenvelope.com/
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