Elbit Imaging Announces Receipt of Noncompliance Notice From the NASDAQ
TEL AVIV, ISRAEL / ACCESSWIRE / May 17, 2017 / Elbit Imaging Ltd. (the "Company") (TASE, NASDAQ: EMITF) announced today that it has received notice from The NASDAQ Stock Market ("Nasdaq") that the Company is not in compliance with Nasdaq Marketplace Rule 5250(c)(1) because the Company has not yet filed its Annual Report on Form 20-F for the period ending December 31, 2016 (the "Form 20-F") with the Securities and Exchange Commission.
As previously disclosed by the Company, Plaza Centers N.V. ("Plaza") (LSE: PLAZ), an indirect subsidiary (45%) of the Company, published its annual financial statements for 2016, which contain a report by Plaza's auditor that expresses no opinion with regard to Plaza's financial statements. As a result of this disclaimer by the auditor of Plaza, the Company's auditor has notified the Company that it is unable to provide an audit opinion regarding the Company's financial statements for 2016. Consequently, the Company is not in a position to file the Form 20-F at this time.
The Company is required to submit a plan to Nasdaq within 60 days from May 15, 2017 to regain compliance with the requirements for continued listing. If Nasdaq accepts the plan submitted by the Company, it can grant an exception of up to 180 calendar days from the due date of the Form 20-F, or until November 13, 2017, to regain compliance. The Company intends to submit within the 60-day timeframe a plan to regain compliance with Nasdaq's requirements for continued listing. There can be no assurance that the Company will successfully regain compliance with such requirements.
If Nasdaq does not accept the Company's plan, Nasdaq will provide notice that the Company's ordinary shares will be subject to delisting from the Nasdaq Global Select Market. The Company would have the right to appeal a determination to delist its ordinary shares.
The Company's audit committee and Board of Directors are reviewing the Company's financial statements and the Company intends to submit unaudited financial statements for 2016 on Form 6-K no later than May 19, 2017. In addition, the Company is working diligently to prepare its audited financial statements for 2016 and intends to submit its Form 20-F, including such financial statements, as soon as practicable.
