ModusLink Global Solutions ™, Inc. (NASDAQ: MLNK) today announced that it has received a determination letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”). The letter, which was expected, advises that because the Company remains noncompliant with the filing requirements for continued listing under Nasdaq Listing Rule 5250(c)(1), trading of the Company’s common stock is subject to delisting.
The Company has the right to appeal this determination and on December 17, 2012 expects to request a hearing before Nasdaq’s Hearings Panel (the “Panel”), which under Nasdaq Listing Rules will stay the suspension of trading and delisting of the Company’s securities for 15 days from the date of the request. The Company will also request a further stay of the suspension and delisting, pending the hearing, which may be granted at Nasdaq’s discretion.
Following the hearing, the Panel has the authority under the Nasdaq Listing Rules to grant the Company an extension of time within which to regain compliance with the filing requirements for a period not to exceed 360 days from the original due date (June 11, 2012) of the first delayed filing. However, there can be no assurance that the Panel will grant the Company a stay of the Panel’s delisting determination until the conclusion of the hearing process or that it will grant the additional time requested by the Company to regain compliance with Nasdaq’s filing requirements.
As previously disclosed, the Company expected Nasdaq to issue the determination letter in accordance with Nasdaq procedures regarding the Company’s previously announced delayed filing of the Company's Quarterly Report on Form 10-Q for the third quarter of fiscal year 2012, the Annual Report on Form 10-K for the fiscal year ended July 31, 2012 and the Quarterly Report on Form 10-Q for the first quarter of fiscal 2013, with the Securities and Exchange Commission (“SEC”). The Company is working to complete its previously announced process to restate financial results for certain prior periods and become current in its periodic report filings with the SEC.