Sport-Haley, Inc. received a letter from the Nasdaq Stock Market, Inc. dated November 13, 2007, notifying the company that for the last 30 consecutive days its common stock has not maintained a minimum market value of publicly held shares of $5,000,000, as required for continued inclusion in The Nasdaq Global Market pursuant to Nasdaq Marketplace Rule 4450(a)(2). Publicly held shares exclude those held by officers, directors and persons holding over 10% of the company's common stock. Nasdaq advised that, pursuant to Rule 4450(e)(1), the company will be provided 90 calendar days, or until February 11, 2008, to regain compliance. Nasdaq further advised that the company may want to apply to transfer its securities to The Nasdaq Capital Marktet. To transfer, the company must satisfy the continued inclusion requirements for that market, which are generally less restrictive than the continued inclusion requirements for The Nasdaq Global Market.
If compliance with The Nasdaq Global Markets inclusion requirements cannot be demonstrated by February 11, 2008, and the company has not chosen to apply to transfer its securities to The Nasdaq Capital Market, the Nasdaq staff will provide notification that the company's securities will be delisted. If the company chooses to submit a transfer application and it pays the applicable listing fees by February 11, 2008, the initiation of delisting proceedings will be stayed pending Nasdaq staff's review of the application.
The company is currently evaluating all available options to remedy its noncompliance with the Nasdaq continued inclusion requirements.