WASHINGTON, N.C. – The American Stock Exchange has responded to the plan submitted last month by Fountain Powerboat Industries, Inc. (AMEX: FPB) to regain compliance with AMEX’s listing standards, granting the company an extension until Dec. 11, the boat builder reported in a statement this morning.
On June 11, the company received notice from the American Stock Exchange that it was not in compliance with one of AMEX’s standards for the continued listing of the company’s common stock. Specifically, the notice stated that the company was not in compliance with Section 1003(a)(iv) of Amex’s Company Guide because it had “…sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired, that it appears questionable, in the opinion of the Exchange, as to whether such company will be able to continue operations and/or meet its obligations as they mature,” according to the company. As a result, the notice stated that the company had become subject to Amex’s suspension and delisting procedures.
AMEX permitted the company to submit a plan addressing how it intended to regain compliance with Amex’s listing standards, which it did on July 18.
“On Aug. 25, Amex notified us that the company has made a reasonable demonstration of its ability to regain compliance and that AMEX has accepted the plan and granted an extension until Dec. 11 for the company to regain compliance with AMEX’s continued listing standards,” the company said in its statement today.
During the extension period, the listing of the company’s common stock will be continued and the AMEX staff periodically will review Fountain’s implementation of the strategies described in the plan, according to the boat builder. Failure by the company to make progress consistent with the plan or to regain compliance with Amex’s continued listing standards by the end of the extension period could result in the initiation of proceedings to delist the company’s common stock from the American Stock Exchange, Fountain concluded.
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