Tower Group International, Ltd. announced Wednesday that NASDAQ has notified the company that it is not in compliance with the exchange’s listing requirements.
According to Tower’s press release, which was issued in accordance with NASDAQ Listing Rule 5810(b), the noncompliance issue flagged by NASDAQ in its letter is Tower’s failure to file third-quarter earnings report with the Securities and Exchange Commission.
Tower’s press release states that the company expects to file a delinquent second-quarter earnings report with the SEC by Nov. 29. NASDAQ staff had previously granted the company an exception until Nov. 29, 2013 to file its delinquent second-quarter report on Form 10-Q.
As a result of the additional delinquency (in the report for the period ended Sept. 30), Tower must now submit an update to its original plan to regain compliance with the applicable listing rule by Nov. 29, 2013, the press release notes.
“Tower expects to file with the SEC its Form 10-Q for the period ended June 30, 2013 and to submit to NASDAQ an update to its plan to regain compliance with the applicable listing rule on or before Nov. 29, 2013, and thereby to regain compliance with the NASDAQ continued listing rules, the press release says.
According to Tower, the company received the letter from NASDAQ on Nov. 14. That is also the day the Tower issued a press release disclosing “substantial doubt about the company’s ability to continue as a going concern,” and reported that Tower was restating several previously filed annual financial statements. A day later, Tower’s chairman, president and chief executive officer, Michael H. Lee, signed a letter to Tower’s business partners reassuring them that its obligations will be met.
In Wednesday’ press release, Tower said that the NASDAQ notice has no immediate effect on the NASDAQ listing or trading of the company’s common stock.
This article originally appeared on CarrierManagement.com.
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