SOURCE: Sport-Haley, Inc.

November 15, 2007 13:25 ET

Sport-Haley, Inc. Reports Receipt of Letter From the Nasdaq Stock Market Regarding Maintenance Standards

DENVER, CO--(Marketwire - November 15, 2007) - Sport-Haley, Inc. (NASDAQ: SPOR) ("Sport-Haley" or the "Company") today reported that the Company received a letter from the Nasdaq Stock Market, Inc. ("Nasdaq"), dated November 13, 2007, notifying the Company that for the last 30 consecutive days its common stock has not maintained a minimum market value of publicly held shares of $5,000,000, as required for continued inclusion in The Nasdaq Global Market pursuant to Nasdaq Marketplace Rule 4450(a)(2). Publicly held shares exclude those held by officers, directors and persons holding over 10% of the Company's common stock. Nasdaq advised that, pursuant to Rule 4450(e)(1), the Company will be provided 90 calendar days, or until February 11, 2008, to regain compliance. Nasdaq further advised that the Company may want to apply to transfer its securities to The Nasdaq Capital Marktet. To transfer, the Company must satisfy the continued inclusion requirements for that market, which are generally less restrictive than the continued inclusion requirements for The Nasdaq Global Market.

If compliance with The Nasdaq Global Markets inclusion requirements cannot be demonstrated by February 11, 2008, and the Company has not chosen to apply to transfer its securities to The Nasdaq Capital Market, the Nasdaq staff will provide notification that the Company's securities will be delisted. If the Company chooses to submit a transfer application and it pays the applicable listing fees by February 11, 2008, the initiation of delisting proceedings will be stayed pending Nasdaq staff's review of the application.

The Company is currently evaluating all available options to remedy its noncompliance with the Nasdaq continued inclusion requirements.

Sport-Haley, Inc. designs, purchases, contracts for the manufacture of and markets women's and men's fashion golf apparel and outerwear under the SPORT HALEY® and Ben Hogan® labels. The fashion golf apparel collections, known for their innovative designs, quality fabrics, generous fits and classic styles, are primarily marketed in the premium and mid-priced markets, through a network of independent sales representatives and distributors, to golf professional shops, country clubs, resorts and exclusive department stores within the United States and by certain distributors within international markets. Reserve Apparel Group LLC, a wholly owned subsidiary of Sport-Haley, Inc., designs, purchases, contracts for the manufacture of, markets and distributes branded golf apparel and outerwear under the Top-Flite® label to mass retailers and other big-box type high sales volume retail stores. Ben Hogan® fashion apparel and Top-Flite® branded apparel are distributed pursuant to a licensing agreement with Callaway Golf Company, which we consider to be a key component of our business strategies.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: When used in this release, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "believe," and similar expressions, variations or the negative of these words, and any statement regarding possible or assumed future results of operations of our business, the markets for our products, anticipated expenditures, regulatory developments or competition, or other statements regarding matters that are not historical facts, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to various risks and uncertainties, including, but not limited to, the following: our ability to successfully anticipate fashion trends, design favorably accepted fashion golf apparel, effectively advertise and communicate within the marketplace, and penetrate our chosen distribution channels; competition within golf apparel markets; business conditions and growth in the fashion golf apparel market and the general economy; our ability to successfully forecast sales and optimize inventory levels; our ability to successfully manage risks associated with the trend of an increasing relative percentage of sales with respect to licensed apparel, such as the Ben Hogan® apparel collections; establishing markets for our Top-Flite® apparel which provide the annual sales amount required by Callaway to satisfy the minimum royalty payments due in accordance with the license agreement for Top-Flite® apparel; loss of certain third party suppliers, and/or delays in receiving garments from third party suppliers caused by various factors, including lost or reduced manufacturing capacity or significant suppliers, labor shortages, timely performance of third parties, transportation difficulties, and others; significant delays in deliveries from third party suppliers; unsatisfactory recourse with regard to nonconforming goods received from foreign suppliers; political and international trade relations; changes in international trade quota systems for apparel; significant reliance upon several individual foreign suppliers; reliance upon a certain foreign person, responsible for maintaining relationships with and monitoring the performance of certain of our significant foreign suppliers; consumer spending on golf apparel; general global economic and political conditions resulting from threats or acts of war or terrorism and responses thereto; access to capital; maintaining satisfactory relationships with commercial banking institutions; establishing controls with regard to and maintaining the integrity of technology and information systems; and, reliance upon executive officers and key employees. Additional information on these and other factors that could affect our financial results is included in the discussion below and in our Form 10-K for the year ended June 30, 2007. There may be other factors not mentioned above, in the discussion below or included in our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statements. The reader should not place undue reliance on any forward-looking statements. Neither the Company nor any of its corporate officers or key employees assumes any obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.

Contact Information

  • CONTACT:
    Donald W. Jewell
    Interim Chief Executive Officer
    (303) 320-8800

    Patrick W. Hurley
    Chief Financial Officer
    (303) 320-8800