news :
SEC Filing: The Princeton Review Receives NASDAQ Deficiency Notice
Posted April 2, 2011
On March 29, 2011, The Princeton Review, Inc. received a deficiency letter from the NASDAQ Stock Market stating that, based on the closing bid price of the Company's listed securities for the last 30 consecutive business days, the Company no longer meets the minimum $1.00 per share requirement for continued listing on The NASDAQ Global Market under Marketplace Rule 5450(a)(1). Under Marketplace Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until September 26, 2011, in which to regain compliance with the minimum bid price rule.
If at any time before September 26, 2011, the bid price of the Company's listed securities closes at $1.00 per share or more for a minimum of 10 consecutive business days, NASDAQ stated that it will notify the Company that it has achieved compliance with the minimum bid price rule and the matter will be closed. If the Company does not regain compliance with the minimum bid price rule before September 26, 2011, NASDAQ stated that it will issue a delisting notice. At that time, the Company may request a hearing before a NASDAQ Listing Qualifications Panel, which would stay any delisting action by NASDAQ pending a final decision by the panel.
Alternatively, NASDAQ stated that the Company may be eligible for an additional grace period after the end of the initial 180 day grace period by transferring its securities to The NASDAQ Capital Market. In such event, the Company will be required to meet the initial listing standards, with the exception of the bid price requirement, for The NASDAQ Capital Market and provide written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split if necessary. NASDAQ further stated that as part of its review process, staff will make a determination of whether it believes the Company will be able to cure the deficiency. If NASDAQ concludes that the Company will not be able to cure the deficiency or make the required representation, it will provide notice that the Company's securities will be subject to delisting.
The NASDAQ letter received on March 29, 2011 has no effect on the listing of the Company's common stock at this time. However, there can be no assurance that the Company will be able to regain compliance with NASDAQ's minimum bid price rule.