hhgregg Receives Continued Listing Criteria Notice from NYSE
February 03 2017 - 4:30PM
Business Wire
hhgregg, Inc. (NYSE: HGG) (“hhgregg” or the “Company”) today
announced that on January 31, 2017 it was informed orally by
the staff of the New York Stock Exchange (the “NYSE”) that the
Company was not in compliance with Rule 802.01B and, by the next
trading day, would not be in compliance with Rule 802.01C of the
NYSE’s Listed Company Manual. On February 2, 2017, the Company
received written notification from the NYSE (the “NYSE Letter”)
confirming that the Company is not in compliance with Rule 802.01B
and Rule 802.01C of the NYSE’s Listed Company Manual.
The Company is not in compliance with Rule 802.01B, which is a
continued listing criteria, because its average global market
capitalization over a consecutive 30 trading-day period was less
than $50,000,000 and, at the same time, its stockholders’ equity
was less than $50,000,000. In accordance with Rule 802.02 of the
NYSE’s Listed Company Manual, the Company intends to contact the
NYSE, within ten days after receipt of the NYSE Letter, to confirm
receipt of the NYSE Letter and to inform the NYSE that it intends
to submit to the NYSE a plan stating the actions that the Company
has taken, or will take, to bring it into conformity with Rule
802.01B within 18 months of receipt of the NYSE Letter. The
Company’s plan must be submitted to the Listings Operations
Committee of the NYSE within 45 days after receipt of the NYSE
Letter. The Listings Operations Committee of the NYSE has up to 45
days to review the plan. If the Listings Operations Committee of
the NYSE accepts the plan, then the Company will be subject to
review on a quarterly basis for compliance with the plan, and the
Company’s common stock will continue to trade on the NYSE during
the 18 month period, subject to the Company’s compliance with other
NYSE continued listing requirements. The Company must demonstrate
compliance with Rule 802.01B during the 18-month period or the NYSE
will subject it to the suspension and delisting procedures at the
end of that period. If the Listings Operations Committee of the
NYSE does not accept the Company’s plan, then the Company will be
subject to the suspension and delisting procedures of the NYSE.
The Company is not in compliance with Rule 802.01C, which is
also a continued listing criteria, because the average closing
price of the Company’s common stock as reported on the consolidated
tape was less than $1.00 over a consecutive 30 trading-day period.
In accordance with Rule 802.01C, the Company intends to notify the
NYSE, within ten days after receipt of the NYSE Letter, of its
intent to cure this deficiency. The Company has six months from the
date of the NYSE Letter to regain compliance with Rule 802.01C by
having a closing stock price of at least $1.00 on the last trading
day of any calendar month during the six month period and an
average closing stock price of at least $1.00 over the 30
trading-day period end on the last trading day of that same month,
or by meeting both of those conditions as of the last trading day
of the six month period. If the Company’s stock price does not meet
these requirements during the six month period, then the Company
will be subject to the suspension and delisting procedures of the
NYSE. The NYSE can also take action to delist the Company’s common
stock if the Company’s common stock trades at levels that the NYSE
deems to be abnormally low. During the six month period, the
Company’s common stock will continue to trade on the NYSE, subject
to the Company’s compliance with other NYSE continued listing
requirements.
The receipt of the NYSE Letter does not affect the Company’s
business operations or its Securities and Exchange Commission
reporting requirements.
About hhgregg
hhgregg is an appliance, electronics and furniture retailer that
is committed to providing customers with a truly differentiated
purchase experience through superior customer service,
knowledgeable sales associates and the highest quality product
selections. Founded in 1955, hhgregg is a multi-regional retailer
currently with 220 stores in 19 states that also offers
market-leading global and local brands at value prices nationwide
via hhgregg.com.
Forward Looking Statements
The following is a Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements,
including with respect to hhgregg’s intentions and plans to regain
compliance with the continued listing criteria of the NYSE. hhgregg
has based these forward-looking statements on its current
expectations, assumptions, estimates and projections. While hhgregg
believes these expectations, assumptions, estimates and projections
are reasonable, these forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond its control. These and other important
factors may cause hhgregg’s actual results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Some of the key factors that could
cause actual results to differ from hhgregg’s expectations are: the
ability to successfully execute the Company's strategies and
initiatives, particularly in returning the Company to profitable
growth; the Company's ability to increase customer traffic and
conversion; competition in the retail industry; the Company's
ability to maintain a positive brand perception and recognition;
the Company's ability to attract and retain qualified personnel;
the Company's ability to maintain the security of customer,
associate and Company information; rules, regulations, contractual
obligations, compliance requirements and fees associated with
accepting a variety of payment methods; the Company's ability to
effectively achieve cost cutting initiatives; the Company's ability
to generate strong cash flows to support its operating activities;
the Company's relationships and operations of its key suppliers;
the Company's ability to generate sufficient cash flows to recover
the fair value of long-lived assets; the Company's ability to
maintain and upgrade its information technology systems; the
fluctuation of the Company's comparable store sales; the effect of
general and regional economic and employment conditions on the
Company's net sales; the Company's ability to meet financial
performance guidance; disruption in the Company's supply chain;
changes in trade regulation, currency fluctuations and prevailing
interest rates; and the potential for litigation.
Other factors that could cause actual results to differ from
those implied by the forward-looking statements in this press
release are more fully described in the “Risk Factors” section in
the Company’s Annual Report on Form 10-K for fiscal year 2016 filed
May 19, 2016 and the Company's Quarterly Report on Form 10-Q for
the fiscal quarter ended December 31, 2016 filed on January 26,
2017. Given these risks and uncertainties, you are cautioned not to
place undue reliance on these forward-looking statements. The
forward-looking statements included in this press release are made
only as of the date hereof. hhgregg does not undertake, and
specifically declines, any obligation to update any of these
statements or to publicly announce the results of any revisions to
any of these statements to reflect future events or
developments.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170203005697/en/
hhgregg, Inc.Lance Peterson, 317-848-8710Vice President, Finance
and Planninginvestorrelations@hhgregg.com
HHGREGG (CE) (USOTC:HGGGQ)
Historical Stock Chart
From Jun 2024 to Jul 2024
HHGREGG (CE) (USOTC:HGGGQ)
Historical Stock Chart
From Jul 2023 to Jul 2024