Adams Golf has received a Nasdaq staff determination that its securities will be delisted from The Nasdaq SmallCap Market at the opening of business on May 22, 2003 for failure to regain compliance with the minimum $1.00 closing bid price per share requirement found in Marketplace Rule 4310(c)(4). Although the Company was given until May 20, 2003 to request a hearing to appeal the staff determination, the Company does not expect to seek such an appeal at this time.
Following the delisting with The Nasdaq SmallCap Market, the Company intends for its stock to be traded via the OTC Bulletin Board (OTCBB). The OTCBB is a regulated quotation service that displays real-time quotes, last-sales prices and volume information for eligible securities.
The National Association of Securities Dealers is in the process of establishing a new market to replace the OTCBB. This new market, the BBX, will be for small companies that are required to meet many of the corporate governance requirements of Nasdaq-listed companies, but there will be no financial requirements for listing. Specifically, BBX companies will not be required to meet minimum share price, market capitalization, or shareholder equity requirements. The BBX is scheduled to launch in the fourth quarter of this year, pending approval of the Securities and Exchange Commission. The Company expects to further transition its securities to the BBX at the appropriate time.
“While the Company would have preferred to have maintained its Nasdaq listing status, we remain focused on our core objective of designing and marketing golf clubs that make the game more fun for golfers everywhere,” stated Chip Brewer, President and CEO of Adams Golf. “We continue to believe that our emphasis on Adams operating performance provides the best long term opportunity for increasing shareholder value.”
