SOURCE: Emerson Radio Corp.
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August 08, 2008 16:05 ET
Emerson Radio Corp. Receives Notice of Non-Compliance From American Stock Exchange
PARSIPPANY, NJ--(Marketwire - August 8, 2008) - Emerson Radio Corp. (AMEX: MSN) today
announced it has received notice from the staff of the American Stock
Exchange (AMEX) that it is not in compliance with the reporting
requirements for continued listing on AMEX set forth in Section
803(B)(2)(c) of the AMEX Company Guide due to Emerson's failure to have an
audit committee comprised of at least two independent directors.
As previously disclosed, on July 29, 2008, Emerson notified AMEX that as a
result of Norbert R. Wirsching's resignation as a director of Emerson, the
Audit Committee would consist of one independent director, and not two
independent directors as required by Section 803(B)(2)(c) of the AMEX
Company Guide. As a result, Emerson has not been in compliance with
Section 803(B)(2)(c) of the AMEX Company Guide since July 28, 2008.
In its notice, AMEX advised that Emerson has until October 13, 2008 to
regain compliance with the AMEX requirements. AMEX further advised that in
setting the deadline for compliance with the AMEX requirements, AMEX
determined not to apply, at this time, the continued listing evaluation and
follow-up procedures specified in Section 1009 of the AMEX Company Guide.
Because Emerson currently is not in compliance with the AMEX continued
listing standards, however, the notice constitutes a warning letter
pursuant to Section 1009(a)(i) of the AMEX Company Guide and notice of
failure to satisfy a continued listing standard.
In its notice, AMEX also advised Emerson that if the Company fails to
regain compliance with Section 803(B)(2)(c) of the AMEX Company Guide on or
before October 13, 2008 or any subsequent failure to comply with any other
continued listing requirements will result in AMEX assessing Emerson's
continued listing eligibility including, as appropriate, the application of
the continued listing evaluation and follow-up procedures specified in
Section 1009 of the AMEX Company Guide and/or initiation of delisting
proceedings.
Emerson intends to promptly take all necessary actions to regain compliance
with the AMEX continued listing standards by October 13, 2008. The
Company's Board is currently considering candidates who will qualify to
serve on the Audit Committee.
About Emerson Radio Corp.
Emerson Radio Corporation (AMEX: MSN), founded in 1948, is headquartered in
Parsippany, N.J. The Company designs, markets and licenses, worldwide, a
variety of consumer electronics and home appliances including microwaves
and wine coolers, clock radios, full lines of televisions and other video
products, and audio and home theater products. For more information,
please visit Emerson Radio's Web site at www.emersonradio.com.
Forward-Looking Statements
This release contains "forward-looking statements" made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including statements relating to the Company's ability to regain
compliance with the AMEX Company Guide. Forward-looking statements reflect
management's current knowledge, assumptions, judgment and expectations
regarding future performance or events. Although management believes that
the expectations reflected in such statements are reasonable, they give no
assurance that such expectations will prove to be correct and you should be
aware that actual results could differ materially from those contained in
the forward-looking statements. Forward-looking statements are subject to
a number of risks and uncertainties, including the risk factors detailed in
the Company's reports as filed with the Securities and Exchange Commission.
The Company assumes no obligation to update the information contained in
this news release.