ENGlobal Corporation Granted 180-Day Extension by NASDAQ to Regain Compliance with Minimum Bid Price Rule
May 30 2019 - 12:50PM
ENGlobal Corporation
(Nasdaq:ENG), a leading provider of
engineered modular solutions, today announced it had received
notification from the NASDAQ Stock Market indicating that the
Company will have an additional 180-day grace period, or until
November 25, 2019, to regain compliance with NASDAQ's $1.00 minimum
bid requirement.
The notification indicated that the Company did
not regain compliance during the initial 180-day grace period
provided under the rule. In accordance with NASDAQ Marketplace Rule
5810(c)(3)(A), the Company is eligible for the additional grace
period because it meets the initial listing requirements for the
NASDAQ Capital Market, except for the bid price, and the provision
of written notice to NASDAQ of ENGlobal’s intention to cure the
deficiency during the additional grace period by effecting a
reverse stock split, if necessary.
If, at any time during this additional grace
period, the closing bid price of the Company’s common stock is at
least $1 per share for a minimum of 10 consecutive business days,
NASDAQ will provide the Company with written confirmation of
compliance and the matter will be closed. If the Company chooses to
implement a reverse stock split, however, it must complete the
split no later than 10 business days prior to the expiration of the
additional grace period in order to timely regain compliance.
If ENGlobal does not meet the minimum bid
requirement during the additional 180-day grace period, NASDAQ will
provide written notification to the Company that its common stock
will be subject to delisting. At that time, the Company can request
NASDAQ for a hearing to present a plan to regain compliance.
This NASDAQ notification does not impact
ENGlobal's listing on the NASDAQ Capital Market at this time, and
the Company’s common stock will continue to trade under its current
symbol "ENG" during the additional 180-day compliance period.
About ENGlobal
ENGlobal (ENG) is a leading provider of
engineered modular solutions to the energy sector throughout the
United States and internationally. ENGlobal operates through
two business segments: Automation and Engineering. ENGlobal's
Automation segment provides services related to the design,
integration and implementation of process distributed control and
analyzer systems, advanced automated data gathering systems and
information technology. Within the Automation segment,
ENGlobal's Government Services group provides engineering, design,
installation and operation and maintenance of various government,
public sector and international facilities, and specializes in the
turnkey installation and maintenance of automation and
instrumentation systems for the U.S. Defense industry worldwide.
The Engineering segment provides multi-disciplined engineering
services relating to the development, management and execution of
projects requiring professional engineering and related project
management services. Further information about the Company and
its businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's
expectations regarding its operations and certain other matters
discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws and
are subject to risks and uncertainties including, but not limited
to: (1) our ability to identify, evaluate, and complete any
strategic alternative in connection with our review of strategic
alternatives; (2) the impact of the announcement of our review of
strategic alternatives on our business, including our financial and
operating results, or our employees, suppliers and customers; (3)
our ability to realize project awards on our pending proposals, and
the timing, scope and amount of any related awards; (4) the effect
of economic downturns and the volatility and level of oil and
natural gas prices; (5) our ability to retain existing customers
and attract new customers; (6) our ability to accurately estimate
the overall risks, revenue or costs on a contract; (7) the risk of
providing services in excess of original project scope without
having an approved change order; (8) our ability to execute our
expansion into the modular solutions market and to execute our
updated business growth strategy to position the Company as a
leading provider of higher value industrial automation and
Industrial Internet of Things services to its customer base; (9)
our ability to attract and retain key professional personnel; (10)
our ability to fund our operations and grow our business utilizing
cash on hand, internally generated funds and other working capital;
(11) our ability to obtain additional financing, including pursuant
to a new credit facility, when needed: (12) our dependence on one
or a few customers; (13) the risks of internal system failures of
our information technology systems, whether caused by us,
third-party service providers, intruders or hackers, computer
viruses, malicious code, cyber-attacks, phishing and other cyber
security problems, natural disasters, power shortages or terrorist
attacks; (14) our ability to realize revenue projected in our
backlog and our ability to collect accounts receivable and process
accounts payable in a timely manner; (15) the uncertainties related
to the U.S. Government’s budgetary process and their effects on our
long-term U.S. Government contracts; (16) the risk of unexpected
liability claims or poor safety performance; (17) our ability to
identify, consummate and integrate potential acquisitions; (18) our
reliance on third-party subcontractors and equipment manufacturers;
(19) our ability to satisfy the continued listing standards of
NASDAQ with respect to our common stock or to cure any continued
listing standard deficiency with respect thereto; and (20) the
effect of changes in laws and regulations, including U.S. tax laws,
with which the Company must comply and the associated cost of
compliance with such laws and regulations . Actual results and the
timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due
to a number of factors detailed from time to time in ENGlobal's
filings with the Securities and Exchange Commission. In addition,
reference is hereby made to cautionary statements set forth in the
Company's most recent reports on Form 10-K and 10-Q, and other SEC
filings.
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Contacts:
Mark A. Hess, CFO (281) 878-1000 ir@ENGlobal.com
Market Makers - Investor Relations Jimmy Caplan 512-329-9505
jimmycaplan@me.com
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