HOUSTON, May 30, 2019 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of engineered modular solutions, today announced it had received notification from the NASDAQ Stock Market indicating that the Company will have an additional 180-day grace period, or until November 25, 2019, to regain compliance with NASDAQ's $1.00 minimum bid requirement.
The notification indicated that the Company did not regain compliance during the initial 180-day grace period provided under the rule. In accordance with NASDAQ Marketplace Rule 5810(c)(3)(A), the Company is eligible for the additional grace period because it meets the initial listing requirements for the NASDAQ Capital Market, except for the bid price, and the provision of written notice to NASDAQ of ENGlobal’s intention to cure the deficiency during the additional grace period by effecting a reverse stock split, if necessary.
If, at any time during this additional grace period, the closing bid price of the Company’s common stock is at least $1 per share for a minimum of 10 consecutive business days, NASDAQ will provide the Company with written confirmation of compliance and the matter will be closed. If the Company chooses to implement a reverse stock split, however, it must complete the split no later than 10 business days prior to the expiration of the additional grace period in order to timely regain compliance.
If ENGlobal does not meet the minimum bid requirement during the additional 180-day grace period, NASDAQ will provide written notification to the Company that its common stock will be subject to delisting. At that time, the Company can request NASDAQ for a hearing to present a plan to regain compliance.
This NASDAQ notification does not impact ENGlobal's listing on the NASDAQ Capital Market at this time, and the Company’s common stock will continue to trade under its current symbol "ENG" during the additional 180-day compliance period.
ENGlobal (ENG) is a leading provider of engineered modular solutions to the energy sector throughout the United States and internationally. ENGlobal operates through two business segments: Automation and Engineering. ENGlobal's Automation segment provides services related to the design, integration and implementation of process distributed control and analyzer systems, advanced automated data gathering systems and information technology. Within the Automation segment, ENGlobal's Government Services group provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities, and specializes in the turnkey installation and maintenance of automation and instrumentation systems for the U.S. Defense industry worldwide. The Engineering segment provides multi-disciplined engineering services relating to the development, management and execution of projects requiring professional engineering and related project management services. Further information about the Company and its businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's expectations regarding its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) our ability to identify, evaluate, and complete any strategic alternative in connection with our review of strategic alternatives; (2) the impact of the announcement of our review of strategic alternatives on our business, including our financial and operating results, or our employees, suppliers and customers; (3) our ability to realize project awards on our pending proposals, and the timing, scope and amount of any related awards; (4) the effect of economic downturns and the volatility and level of oil and natural gas prices; (5) our ability to retain existing customers and attract new customers; (6) our ability to accurately estimate the overall risks, revenue or costs on a contract; (7) the risk of providing services in excess of original project scope without having an approved change order; (8) our ability to execute our expansion into the modular solutions market and to execute our updated business growth strategy to position the Company as a leading provider of higher value industrial automation and Industrial Internet of Things services to its customer base; (9) our ability to attract and retain key professional personnel; (10) our ability to fund our operations and grow our business utilizing cash on hand, internally generated funds and other working capital; (11) our ability to obtain additional financing, including pursuant to a new credit facility, when needed: (12) our dependence on one or a few customers; (13) the risks of internal system failures of our information technology systems, whether caused by us, third-party service providers, intruders or hackers, computer viruses, malicious code, cyber-attacks, phishing and other cyber security problems, natural disasters, power shortages or terrorist attacks; (14) our ability to realize revenue projected in our backlog and our ability to collect accounts receivable and process accounts payable in a timely manner; (15) the uncertainties related to the U.S. Government’s budgetary process and their effects on our long-term U.S. Government contracts; (16) the risk of unexpected liability claims or poor safety performance; (17) our ability to identify, consummate and integrate potential acquisitions; (18) our reliance on third-party subcontractors and equipment manufacturers; (19) our ability to satisfy the continued listing standards of NASDAQ with respect to our common stock or to cure any continued listing standard deficiency with respect thereto; and (20) the effect of changes in laws and regulations, including U.S. tax laws, with which the Company must comply and the associated cost of compliance with such laws and regulations . Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in ENGlobal's filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.
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Mark A. Hess, CFO
Market Makers - Investor Relations