July 6, 2009 (FinancialWire) — Advanced Environmental Recycling Technologies, Inc. (NASDAQ: AERT), a leading plastics recycler and manufacturer of Green building products, said the company received a Nasdaq Staff Determination on June 26, 2009 notifying the company that its request for continued listing on The Nasdaq Capital Market had been denied, and that the company must appeal to a Nasdaq Listing Qualifications Panel for additional time to regain compliance and complete its recapitalization plan.
On April 2, 2009 the company was notified by NASDAQ that it was out of compliance with Listing Rule 5550(b) (the “Rule”), and subsequently submitted a complicated plan to regain compliance with the Rule. On May 22, 2009, in follow up correspondence with NASDAQ, the company stated their opinion that the 105 day compliance requirement was an unrealistic timeline for the company to implement its recapitalization plan. At that time AERT, under the Rules, formally requested a staff delisting determination and a formal hearing before the hearings Panel (the NASDAQ Panel) to present its plan with its proposed timeframe beyond the 105 day period allowed in Nasdaq Listing Rule 5801(c)(2)(B)(i). The company recently filed a timely response with NASDAQ and requested a formal oral hearing before the Panel and has submitted the $5,000.00 fee requirement to NASDAQ. The company expects to receive a formal hearing date in the near future. There can be no assurance the Panel will grant the Company’s request to complete its plan or for continued listing; however, the hearing request will allow the company’s stock to continue to be listed on the Nasdaq Capital Market pending the Panel’s decision.
AERT also previously reported a deficiency for the minimum $1 bid price and received an extension until September 19, 2009 to regain compliance. On June 2, 2009 the company’s shareholders authorized management to implement up to a 20 to 1 reverse stock split if necessary to regain compliance. “AERT understands and respects the rules and will submit its plan to the Nasdaq Listing Qualifications Panel and intends to regain and maintain compliance with NASDAQ requirements,” stated AERT CEO Joe Brooks. NASDAQ makes available to investors a list of all non-compliant companies, which is posted at http://www.nasdaq.com/services/insidenasdaq.stm. As of June 29, 2009, there were 172 companies listed as out of compliance.
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