Fountain Powerboat Industries received notice Nov. 5 from the NYSE Alternext US, successor to the American Stock Exchange, that the company is not in compliance with one of the exchange’s standards for the continued listing of the company’s common stock.
Specifically, the notice states “The company is not in compliance with Section 1003(a)(i) of the Company Guide with stockholders’ equity of less than $2,000,000 and losses from continuing operations and net losses in two of its three most recent fiscal years.”
As a result, the notice says Fountain is subject to the exchange’s suspension and delisting procedures.
Fountain originally received a notice of non-compliance in June, and reported in July it had submitted a plan to deal with its issues. In August, Fountain reported that the exchange accepted its plan and granted it an extension until Dec. 11.
The current notice says Fountain may submit a supplement to the plan by Dec. 5, addressing how it intends to regain compliance. The exchange’s corporate compliance department will evaluate any second plan the company submits and determine whether Fountain has made a reasonable demonstration of its ability to regain compliance.
Fountain remains subject to the conditions set forth in the exchange’s June notice and will be subject to delisting proceedings if it does not submit a second plan, or if that plan is not accepted by the exchange. Even if a second plan is accepted, but the company is not in compliance with all continued listing standards of the Company Guide by Nov. 5, 2009, or if the company does not make progress consistent with the second plan during the plan periods, the exchange said it will initiate delisting proceedings.
“The Company intends to carefully evaluate how it will respond to the Exchange’s current notice, including whether it will be able to submit a Second Plan with a viable chance of success,” Fountain said in the statement. “The Company currently is unable to make any more definite statement about its intention to submit a Second Plan or its prospects for submitting an acceptable Second Plan.”