Image Entertainment Receives Nasdaq Staff Determination Regarding Delisting
December 18 2009 - 5:25PM
Business Wire
Image Entertainment, Inc. (NASDAQ: DISK), a leading independent
licensee and distributor of entertainment programming in North
America, announced today that it received a Nasdaq Staff
Determination Letter (the "Letter") from the staff of the Nasdaq
Stock Market Listing Qualifications Department (the "Staff") on
December 15, 2009. The Letter indicated that the Company had not
regained compliance in accordance with Listing Rule 5810(c)(3)(D)
with the minimum market value of publicly held shares requirement
for continued listing set forth in Listing Rule 5450(b)(2)(C) by
December 14, 2009 in accordance with the Nasdaq Staff Deficiency
Letter previously issued on September 15, 2009. The Letter further
indicated that, unless the Company requests a hearing to appeal the
Staff's determination by December 22, 2009, trading of the
Company’s common stock will be suspended from The Nasdaq Stock
Market ("Nasdaq") effective at the opening of business on December
24, 2009 and a Form 25-NSE will be filed with the Securities and
Exchange Commission that will remove the Company’s common stock
from listing and registration on Nasdaq.
The Company currently intends to request a hearing before a
Nasdaq Hearings Panel (the "Panel") to appeal the Staff's delisting
determination on or before December 22, 2009. A hearing would stay
the suspension of the Company's common stock and the filing of the
Form 25-NSE pending the issuance of the Panel's written decision.
Accordingly, so long as the Company requests a hearing by the
deadline the Company’s common stock is expected to continue to be
listed on The Nasdaq Global Market pending the conclusion of the
appeal process. There can be no assurance that the Panel will grant
the Company's request for continued listing.
About Image Entertainment:
Image Entertainment, Inc. is a leading independent licensee and
distributor of entertainment programming in North America, with
approximately 3,200 exclusive DVD titles and approximately 340
exclusive CD titles in domestic release and approximately 400
programs internationally via sublicense agreements. For many of its
titles, the Company has exclusive audio and broadcast rights and,
through its subsidiary, Egami Media, Inc. has digital download
rights to approximately 2,000 video programs and over 300 audio
titles containing more than 5,100 individual tracks. The Company is
headquartered in Chatsworth, California. For more information about
Image Entertainment, Inc., please go to
www.image-entertainment.com.
Forward-Looking Statements:
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
relating to, among other things, the Company’s goals, plans and
projections regarding the Company’s financial position, results of
operations, market position, product development and business
strategy. These statements may be identified by the use of words
such as “will,” “may,” “estimate,” “expect,” “intend,” “plan,”
“believe,” and other terms of similar meaning in connection with
any discussion of future operating or financial performance or
other events or developments. All forward-looking statements are
based on management’s current expectations and involve inherent
risks and uncertainties, including factors that could delay, divert
or change any of them, and could cause actual outcomes and results
to differ materially from current expectations.
These factors include, but are not limited to, (a) the Company’s
ability to continue as a going concern, (b) the Company’s ability
to service its principal and interest obligations on its
outstanding debt or otherwise renegotiate or refinance such
outstanding debt, including curing the existing defaults on such
outstanding debt, which renegotiation may not be successful and
refinancing may not be available on acceptable terms, if at all,
which may trigger defaults under its other debt agreements, create
liquidity issues, potentially force the Company to file for
protection from its creditors under Chapter 11 of the U.S.
Bankruptcy Code and prevent the Company from continuing as a going
concern, (c) the Company’s limited funds and the Company’s
inability to raise additional funds on acceptable terms or at all,
(d) the Company’s ability to borrow against the Company’s revolving
line of credit, (e) the Company’s ability to secure media content
on acceptable terms, (f) the Company’s DVD manufacturer continuing
to manufacture and fulfill orders to Company customers while the
Company is past due on its payables to such manufacturer, (g) the
Company's decision to appeal the delisting determination, the
ability of the Company to successfully appeal the delisting
determination issued by the Staff of The Nasdaq Stock Market on
December 15, 2009 and the ability of the Company's common stock to
continue trading on The Nasdaq Stock Market, (h) the performance of
business partners upon whom the Company depends upon, (i) changes
in the retail DVD and digital media and entertainment industries,
(j) changing public and consumer taste and changes in customer
spending patterns, (k) decreasing retail shelf space for the
Company’s industry, (l) further sales or dilution of the Company’s
equity, which may adversely affect the market price of the
Company’s common stock, (m) changes in the Company’s business plan,
(n) heightened competition, including with respect to pricing,
entry of new competitors, the development of new products by new
and existing competitors, (o) changes in general economic
conditions, including the performance of financial markets and
interest rates, (p) difficult, adverse and volatile conditions in
the global and domestic capital and credit markets, (q) claims that
the Company infringed other parties’ intellectual property, (r)
changes in accounting standards, practices or policies, and (s)
adverse results or other consequences from litigation, arbitration
or regulatory investigations.
For further details and a discussion of these and other risks
and uncertainties, see “Forward-Looking Statements” and “Risk
Factors” in the Company’s most recent Annual Report on Form 10-K,
and the Company’s most recent Quarterly Reports on Form 10-Q. Many
of the factors that will determine the outcome of the subject
matter of this press release are beyond Image Entertainment’s
ability to control or predict. Actual results for the periods
identified may differ materially from management’s expectations.
Unless otherwise required by law, the Company undertakes no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
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