INFOSONICS
COMPLIANCE PERIOD FOR NASDAQ
MINIMUM BID PRICE RULE EXTENDED THREE MONTHS
SAN
DIEGO, CA, October 23, 2008
-
InfoSonics Corporation (NASDAQ: IFON), one of the premier providers and
distributors of wireless handsets and accessories serving Latin America,
announced today that it received a NASDAQ letter (the "Notice") dated October
22, 2008 indicating that NASDAQ has suspended, for a three month period,
the
enforcement of the rule requiring a minimum bid price of publicly held shares.
The Company will now have until April 13, 2009 to achieve compliance with
the
rule.
On
July
10, 2008, the Company received a letter from the Listing Qualifications
Department of The NASDAQ Stock Market indicating that for the last 30
consecutive trading days, the Company’s publicly held shares had closed below
the minimum $1.00 per share requirement under Marketplace Rule
4450(a)(5).
On
October 16, 2008, NASDAQ implemented a temporary suspension of enforcement
of Marketplace Rule 4450(a)(5) until Friday, January 16, 2009, due to
the volatility of current market conditions. As a result of the temporary
suspension, NASDAQ informed the Company that its deadline for compliance
with
Marketplace Rule 4450(a)(5) has been extended from January 6, 2009 to April
13, 2009.
During
this interim period, the Company’s common stock is expected to continue to trade
on The NASDAQ Global Market. If compliance with Marketplace
Rule 4450(a)(5) cannot be demonstrated by April 13, 2009, the staff of The
NASDAQ Stock Market Listing Qualifications department (the “Staff”) will deliver
a written notification to the Company that its securities will be delisted
from
The NASDAQ Global Market. If the Company receives a delisting notice, the
Company may appeal the Staff’s determination to a Listing Qualifications Panel.
Alternatively, the Company may apply to transfer its securities to The
NASDAQ Capital Market.
About
InfoSonics Corporation
InfoSonics
is one of the premier providers and distributors of wireless handsets and
accessories serving Latin America. For the wireless telecommunications industry,
InfoSonics provides flexible and cost effective solutions, including product
assembly, purchasing, marketing, selling, warehousing, order assembly,
programming, packing, shipping, and delivery. InfoSonics supports manufacturers
in moving their products to agents, resellers, distributors, independent
dealers, retailers and wireless network operators in Latin America. For
additional information, please visit www.infosonics.com.
Cautionary
Statement for the Purpose of the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995
This
press release contains forward-looking statements that are subject to the
safe
harbors created under the Securities Act of 1933 and the Securities Exchange
Act
of 1934. Forward-looking statements include statements that refer to the
Company's intentions to take actions required to regain compliance with the
listing standards of The Nasdaq Global Market, the form, timing and effect
of
any such actions, and the Company's ability to regain compliance. Readers
are
cautioned that actual events that occur could differ materially from those
expressed in or contemplated by the forward-looking statements. Factors that
could cause actual events to differ include, but are not limited to, events
and
developments affecting the Company's per share stock price that may affect
its
ability to achieve the minimum bid price requirement, the Company's ability
to
regain compliance with the minimum bid price listing requirement, the Company's
ability to continue to meet the other Nasdaq listing requirements, which
could
result in the delisting of the Company's common stock even if it achieved
compliance with the minimum bid price requirement, the Company's ability
to
successfully appeal a delisting determination by Nasdaq, and the Company's
ability to transfer its listing to The Nasdaq Capital Market. In addition,
please refer to the risk factors contained in the Company's SEC filings
available at www.sec.gov, including without limitation, the Company's annual
report on Form 10-K for the year ended December 31, 2007 and InfoSonics'
quarterly reports on Form 10-Q for the quarters ended March 31, 2008 and
June
30, 2008. Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date on which they
are
made. InfoSonics undertakes no obligation to update or revise any
forward-looking statements for any reason.
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