Form 8-K - Current report
December 26 2023 - 3:27PM
Edgar (US Regulatory)
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2023-12-26
2023-12-26
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of report (Date of earliest event reported): December 26, 2023
Hallmark Financial Services, Inc. |
(Exact Name of Registrant as Specified in Its Charter) |
Nevada |
(State or Other Jurisdiction
of Incorporation) |
|
001-11252 |
87-0447375 |
(Commission File Number) |
(IRS Employer
Identification No.) |
|
5420 Lyndon B. Johnson Freeway, Suite 1100, Dallas, Texas
|
75240 |
(Address of Principal Executive Offices) |
(Zip Code) |
817-348-1600 |
(Registrant’s Telephone
Number, Including Area Code) |
|
Not Applicable |
(Former Name or Former
Address, if Changed Since Last Report) |
Securities registered pursuant to Section
12(b) of the Act:
Title
of each class |
Trading
Symbol(s) |
Name
of each exchange on which registered |
Common Stock $1.00 par value |
HALL |
Nasdaq Global Market |
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 3.01 Notice of Delisting or
Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On December
26, 2023, Hallmark Financial Services, Inc. provided notice to the Nasdaq Stock Market LLC of its intention to voluntarily delist its
shares of common stock from the Nasdaq Global Market. Trading of the Company’s common stock will be suspended at the open of business
on January 5, 2024. The Company intends to file a Form 25 with the SEC on or about January 5, 2024, with the delisting of its common stock
taking effect no earlier than ten days thereafter. The Company’s decision to voluntary delist its shares was based on the Company’s
failure to meet two of the requirements for continued listing on the exchange and the lack of a viable plan to remediate both such deficiencies
within their established grace periods.
On September
28, 2023, Hallmark Financial Services, Inc. (the “Company”) was notified by Nasdaq Regulation that the Company
no longer met Rule 5450(b)(1)(c), which requires listed companies on the Nasdaq Global Market to maintain a minimum “Market Value
of Publicly Held Shares” (or “MVPHS”) of at least $5,000,000 in the last 30 consecutive business days.
The Rules provide the Company a period of 180 calendar days to regain compliance with this requirement, after which the Company will be
subject to delisting from the Nasdaq Global Market. The Company could regain compliance with this Rule if the MVPHS of its common stock
closes at $5,000,000 or above for at least 10 consecutive business days before the compliance period expires on March 26, 2024.
On November
16, 2023, the Company was notified by Nasdaq Regulation that the Company no longer met Rule 5450(b)(1)(A), which requires companies listed
on the Nasdaq Global Market to maintain a minimum of $10,000,000 in stockholders’ equity for continued listing. Under Nasdaq Rules,
the Company has 45 calendar days, or until January 2, 2024, to submit a plan to regain compliance. (a “Remediation Plan”),
which if accepted by Nasdaq could provide the Company an extension of up to 180 days from the date of notice to cure such listing deficiency.
On December
16, 2023, the Company’s Board of Directors determined that there was no viable Remediation Plan that could be presented to Nasdaq
by the impending January deadline. In addition, there was significant doubt whether the Company could regain compliance with the MVPHS
within the timeframe for that remediation effort. In light of these determinations and in an attempt to effect what the Company sees as
an inevitable transition away from Nasdaq in a smooth and cost-efficient manner, the Board approved the delisting of the Company’s
Common Stock from the Nasdaq Global Market. The Company expects that its shares of common stock will be quoted on the Pink market, or
another market operated by OTC Markets Group Inc. (The “OTC”). However, there is no guarantee that a broker will continue
to make a market in the common stock or that trading of the common stock will continue on an OTC Market or elsewhere.
The Company intends to continue reporting
under the Securities Exchange Act of 1934, as amended, and the delisting of our common stock is not expected to affect the Company’s
business operations.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.
|
HALLMARK FINANCIAL SERVICES, INC. |
|
Date: December 26, 2023 |
By: |
/s/ CHRISTOPHER J. KENNEY |
|
|
Christopher J. Kenney, Chief Executive Officer |
|
|
|
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