The American Stock Exchange has given Fountain Powerboat Industries an extension to regain compliance for continued listing on the exchange.
Amex notified the Washington, N.C., boatbuilder in June that it was not in compliance with one of Amex’s standards for continued listing. The notice stated that the company 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.”
As a result, the notice stated that the company had become subject to Amex's suspension and delisting procedures.
Amex permitted Fountain to submit a plan addressing how it intended to regain compliance with Amex's listing standards. Fountain submitted a plan July 18 to Amex that summarized its strategy for dealing with the issues raised in the notice.
Amex notified Fountain Aug. 25 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, 2008, for the company to regain compliance with Amex's continued listing standard,” according to a statement from Fountain.
During the extension period, the listing of the company's common stock will be continued, and Amex periodically will review implementation of the strategies described in the plan. 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.
For more information, click here.