Harvey Electronics Receives Nasdaq Delisting Notice; Harvey Plans to Appeal and Stay Delisting of Stock
Harvey Electronics, Inc. ("Harvey Electronics", "Harvey" or the "Company"; NASDAQ Capital Market symbol: "HRVE"), a leading retailer and custom installer of high quality, exclusive home theater, audio and video products in the metropolitan New York area, today announced that on June 20, 2006, the Company received notice of a Nasdaq Staff Determination indicating that the Company is not in compliance with the Nasdaq rules and as a result, the Company's common stock is subject to delisting from the Nasdaq Capital Market. On December 20, 2005, Nasdaq notified the Company that the minimum bid price of its common stock had closed at less than $1.00 per share over the previous 30 consecutive business days, and, as a result, did not comply with Marketplace Rule 4310(c)(4). Therefore, in accordance with Marketplace Rule 4310(c)(8)(D), the Company was provided 180 calendar days, or until June 19, 2006, to regain compliance with the Rule. As the Company has failed to come into compliance with the Rule and fails to meet the initial inclusion criteria set forth in Marketplace Rule 4310(c), the Company's Common Stock is subject to delisting from the Nasdaq Capital Market; however, the notice from Nasdaq does not by itself, result in delisting of our Common Stock if the Company by June 27, 2006, requests a hearing with a Listing Qualifications Panel.
Pursuant to applicable NASD Marketplace Rules, the Company intends to request a hearing on the Staff's determination to a Nasdaq Listing Qualifications Panel. The hearing request will stay the delisting of the stock pending the Panel's review and determination. Hearings generally are held 30-45 days after the request. There can be no assurance that the Listing Qualifications Panel will grant Harvey's request for continued listing. If the Company is unsuccessful, we may appeal any adverse decision of the Panel to the Nasdaq Listing and Hearing Review Council. Any such appeal by the Company would not stay the ruling of the Listing Qualifications Panel. Should the stock be delisted from the Nasdaq Capital Market, the Company will consider alternatives to the Nasdaq listing.
Harvey's Chief Executive Officer, Franklin Karp, stated, "Nasdaq has raised important issues which we do not take lightly. We continue to do what we believe is in the best interests of our shareholders, customers and employees. The hearing will give us the opportunity to fully inform Nasdaq of the current status of our Company, our plans for the future, including the proposed $4 million financing which will be voted on by our shareholders soon, and our views regarding our stock price. We intend to make a compelling presentation to the Listing Qualifications Panel to try to maintain our listing."
About Harvey Electronics
Harvey Electronics is a leading retailer and custom installer of high quality, exclusive home theater, audio and video products in the metropolitan New York area. The Company currently operates a total of nine locations; eight Harvey showrooms and one separate Bang & Olufsen branded store. There are two Harvey locations in Manhattan and six suburban locations in Paramus, New Jersey; Mt. Kisco, in Westchester; Greenwich, Connecticut; Greenvale/Roslyn, on the north shore of Long Island, in Eatontown, New Jersey and our newest store in Bridgewater, New Jersey. The Bang & Olufsen branded store is located in Union Square on 927 Broadway at 21st Street, in Manhattan. The Company also has a Bang & Olufsen showroom within our Harvey retail store in Greenwich, Connecticut.
Audio Video International, a well-respected trade publication, has named Harvey Electronics a national "Top Ten Retailer of the Year", seven years in a row.
Please visit a Harvey store or one of our Bang & Olufsen showrooms. Also, please inquire about Harvey's custom installation services.
From time to time, information provided by the Company, statements made by its employees or information, included in its filings with the Securities and Exchange Commission may contain statements, which are so-called "forward-looking statements" and not historical facts. Forward-looking statements can be identified by the use of words such as "believe", "expect", "intend", "anticipate", "in my opinion", and similar words or variations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual future results may differ significantly from those stated in any forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including, but not limited to, product demand, pricing, market acceptance, litigation, risks in product and technology development and other risk factors detailed in the Company's Prospectus dated March 31, 1998 and from time to time in the Company's Securities and Exchange Commission reports including its Form 10-K and Forms 10-Q.
For more information and showroom locations, visit our website at www.harveyonline.com.
Michael E. Recca,, 212-709-1907
mer@skycapitalholdings.com
or
Harvey Electronics, Inc.
Franklin C. Karp
fkarp@harveyonline.com
or
Joseph J. Calabrese, 201-842-0078
jcalabrese@harveyonline.com
Source: Business Wire (June 23, 2006 - 3:30 PM EDT)
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