iParty notified by NYSE MKT on non-compliance with respect to common stock price
Nov 26, 2012 (Menafn - M2 EQUITYBITES via COMTEX) --iParty Corp (nyse mkt:IPT), a retailer of party goods, announced on Friday the receipt of a letter from the NYSE MKT exchange indicating that iParty is not in compliance with Section 1003(f)(v) of the NYSE MKT Company Guide as a result of its low selling price for a substantial period of time.
As a result, pursuant to Section 1003(f)(v) of the Company Guide, the company's continued listing on the exchange is predicated on it effecting a reverse stock split of its common stock within a reasonable period of time, no later than 20 May 2013 as determined by the exchange. In the event that iParty does not effect a reverse stock split prior to such time, it could become subject to delisting procedures.
The company has formed a special committee of the independent members of the board of directors and retained Raymond James & Associates Inc to assist it in exploring a broad range of financial and strategic alternatives to enhance shareholder value.
Also, at iParty's 2012 annual meeting, its stockholders had approved an amendment to iParty's restated certificate of incorporation to effect a reverse stock split, under which the existing shares of iParty's common stock would be combined into new shares of iParty common stock at an exchange ratio ranging between one-for-five and one-for-twenty, with the exchange ratio to be determined by the board of directors.
Having obtained the approval for the reverse stock split, the company's board now has the authority but not the obligation to effect the reverse stock split at any time prior to the date of the 2013 Annual Meeting.
In addition, the company stated that currently no decision has been made to engage in a financing or strategic transaction and the special committee has not set a definitive time table for this review process.
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