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Feb. 21, 2014 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NYSE MKT: EVK), a leading apparel supply chain manager and retailer based in
China, today announced that, on
February 14, 2014, it received a warning letter from NYSE Regulation, Inc. (the "Exchange") as a result of the Company's failure to (i) obtain shareholder approval for issuance of 75,485 shares of the Company's common stock as compensation to five non-employee directors (the "Compensation Shares") and (ii) timely file an application with the Exchange for listing of and obtain the Exchange's approval for the listing of these Compensation Shares. The Exchange has accordingly determined that the Company violated Section 301 and 711 of the Company Guide and issued the warning letter.
These Compensation Shares were issued to five independent directors during five years from 2008 through 2013, which account for less than one half of one percent of the total issued and outstanding shares.
To rectify the violations, the Company will adopt an equity compensation plan to cover these Compensation Shares as well as other equity compensation to be issued to directors, officers, employees and consultants and intends to obtain shareholder approval of the equity compensation plan at its annual meeting to be held in the first half of 2014. The Company will hold off issuance of any further equity compensation until shareholder approval of the plan or separate shareholder ratification for issuance of the Compensation Shares is obtained. The Company has entered into lockup agreements with the non-employee directors pursuant to which they agreed not sell, transfer or otherwise transfer the shares they received until a shareholder approval of the plan or separate shareholder ratification for issuance of the Compensation Shares is obtained. The Company will also file the required application for listing the Compensation Shares. In the event the plan is not approved by the shareholders and the Compensation Shares are not ratified by shareholders, the Company will rescind these Compensation Shares.