Cybex International, Inc. has received a determination letter from the Nasdaq Stock Market indicating that the company has not regained compliance with the minimum stockholders' equity requirement of $10 million for continued listing on the Nasdaq Global Market, as set forth in Nasdaq Listing Rules. The company's common stock is subject to delisting on October 13, 2011 unless the company requests a hearing before a Nasdaq Hearings Panel.
The company has requested a hearing before the panel, which has stayed the delisting action pending the issuance of a final decision by the panel. The hearing is scheduled for November 10, 2011.
The company said in an SEC filing its failure to comply with the listing rule is caused solely by an accounting charge relating to the previously reported $65 million judgment in the product liability litigation, Barnhard v. Cybex International, Inc. The company believes the Barnhard verdict was wrongly decided and is currently pursuing an appeal of the judgment which, if successful, will result in the company regaining full compliance with the listing rule.
