Leading Brands, Inc. Announces Resolution of Temporary Non-Compliance with Nasdaq’s Audit Committee Composition Rule
July 16 2018 - 1:30PM
Leading Brands, Inc. (NASDAQ:LBIX) (the
“
Company”) today, announced that on July 12, 2018,
the Company received a letter from the Nasdaq Listing
Qualifications Staff (the “
Staff”), regarding the
Company’s recent temporary failure to comply with Nasdaq’s audit
committee composition requirement set forth in Nasdaq Listing Rule
5605(c)(2), which requires, among other things, that each member of
a company’s audit committee meet the criteria for independence set
forth in Rule 10A-3(b)(1) under the U.S. Securities Exchange Act of
1934, as amended.
On May 24, 2018, the Board of Directors of the
Company appointed the Company’s Chief Executive Officer, President
and Chairman, Ralph D. McRae, to the audit committee in response to
the passing of the Company’s former audit committee member, Mr.
Stephen Fane, on November 10, 2017. Pursuant to Canadian securities
laws, there is an exemption from the independence requirements for
the composition of a company’s audit committee when filling a
vacancy resulting from the death of an audit committee member.
However, as Mr. McRae is an executive officer he does not meet the
criteria for independence set forth in SEC Rule 10A-3(b)(1), and is
not eligible to sit on the audit committee under the Nasdaq Listing
Rules.
On July 9, 2018, Mr. McRae resigned from the
audit committee, and therefore the Company has regained compliance
with the rules. As a result, the Company was advised by the Staff
that it considers this matter closed.
Ralph D. McRae
Ralph D. McRaeChairman & CEO
CONTACT:Leading Brands,
Inc.
Email: info@LBIX.com
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