New York Stock Exchange Accepts Magnetek’s Continued Listing Plan
November 03 2011 - 8:45AM
Business Wire
Magnetek, Inc. (“Magnetek” or the “Company”) (NYSE: MAG) today
announced that the New York Stock Exchange (“NYSE”) notified the
Company that it has accepted the Company's proposed plan for
continued listing on the NYSE. The Listings and Compliance
Committee (the “Committee”) of the NYSE has chosen, at its
discretion, to truncate the plan period for regaining compliance,
given the Company’s recurrence of having fallen below the continued
listing standards.
As previously disclosed in a press release issued and Form 8-K
filed on September 9, 2011, Magnetek received a notice from the
NYSE that it was considered "below criteria" because the Company's
total average market capitalization over a consecutive 30-day
trading period and its most recently reported stockholders’ equity
each amounted to less than $50 million.
As a result of the NYSE's acceptance of Magnetek's plan, the
Company's stock will continue to be listed on the NYSE, pending
quarterly reviews by the Committee to assess progress against the
plan. The Company has until June 30, 2012, to regain compliance
with the NYSE’s continued listing standards described above.
Independent of the above requirements, the Company was notified
on October 26, 2011, of its non-compliance with the NYSE’s listing
standard relating to the price of its common stock, which requires
a minimum average closing price of $1.00 per share over 30
consecutive trading days. The Company has a period of six months
(the “cure period”) to bring its average share price back above
$1.00. Under the NYSE rules, the Company's common stock will
continue to be listed on the NYSE during the cure period, subject
to the Company's compliance with the other continued listing
requirements. The Company plans to notify the NYSE within 10 days
of receipt of the letter that it intends to cure the deficiency.
The Company is not required to submit a business plan to the NYSE
pertaining to the average share price.
Magnetek, Inc. manufactures digital power and motion
control systems used in material handling, people moving and energy
delivery. The Company is headquartered in Menomonee Falls, Wis. in
the greater Milwaukee area and operates manufacturing facilities in
Pittsburgh, Pa., Canonsburg, Pa. and Mississauga, Ontario, Canada,
as well as Menomonee Falls.
Special Note Regarding Online Availability of Magnetek
Releases and Filings
All Magnetek financial news releases and filings with the
Security and Exchange Commission (“SEC”) are posted to the Magnetek
website. Material and financial releases as well as SEC filings are
available at www.magnetek.com. Automatic email alerts for these
postings are available from the Investor Relations section of the
site. Corporate and general releases as well as product information
are also available at www.magnetek.com.
Special Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on the Company’s
expectations and are subject to risks and uncertainties that cannot
be predicted or quantified and are beyond the Company’s control,
including (1) the potential inability to achieve timely
compliance with the NYSE’s continued listing standards, and
(2) the potential for the Company to be considered below
criteria with respect to other NYSE listing standards. Future
events and actual results could differ materially from those set
forth in, contemplated by, or underlying these forward-looking
statements. These include, but are not limited to, economic
conditions in general, business conditions in material handling,
elevator, mining, and alternative energy markets, operating
conditions, competitive factors such as pricing and technology,
risks associated with acquisitions and divestitures, legal
proceedings and the risk that the Company’s ultimate costs of doing
business exceed present estimates. Other factors that could cause
actual results to differ materially from expectations are described
in the Company’s reports filed with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934.