Surge Components Inc. (Deer Park, NY) announced that it has received a notice from the staff of the Nasdaq Stock Market, which determined that it will delist the Surge Component's common stock from quotation on the Nasdaq Stock Market.
The delisting was to have been effective on August 14, 2001, however, the company appealed prior to the date. The Nasdaq staff stated that its decision was based principally upon the public interest concerns raised by Surge's involvement in the previously disclosed "questionable payments," the refusal by two of Surge's top executives to respond directly to questions from Nasdaq staff, and Surge's current inability to meet certain quantitative continued listing criteria under Nasdaq's Marketplace Rules, including the net worth and per-share-stock price requirements. Surge Components will appeal the determination to the Nasdaq Listing Qualifications Panel. The common stock will continue to trade on Nasdaq until the appeal has been decided.
Surge Components President Ira Levy stated, "We believe we have been treated unfairly by Nasdaq and have determined to appeal. We voluntarily reported the questionable payments, have undertaken our own investigation, and have taken steps to ensure such payments are not made in the future. As to the quantitative tests, our net worth exceeds the minimum requirements based on the conversion of our notes into equity since the last reported quarter, and the concern as to stock price could be addressed by a reverse stock split, which we are considering. It would be unfortunate if Nasdaq delists us, but it will not affect our core business which is positioned for a favorable fiscal 2002."
