ATLANTA, Sept. 25, 2014 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE) announced today that, due to the resignation of one of the Company's independent members of the Board of Directors, as previously reported on September 3, 2014, in its 8-K Filing with the Securities and Exchange Commission, the Company received, as expected, a notification letter from The NASDAQ Stock Market ("NASDAQ") stating that the Company no longer complies with Nasdaq's independent director and audit committee requirements as set forth in Listing Rule 5605. The NASDAQ letter was issued in accordance with standard NASDAQ procedures.
As previously reported on the Company's issued 8-K Filing, Ms. Carolyn Howard tendered her resignation effective August 20, 2014, which resulted in the Board of Directors not having a majority of independent members in the compilation of the Board as required by NASDAQ rule 5605.
Consistent with Listing Rules 5605(b)(1)(A) and 5605(c)(4), NASDAQ will provide the Company a cure period in order to regain compliance as follows:
- until the earlier of the Company's next annual shareholders' meeting or August 20, 2015; or
- if the next annual shareholders' meeting is held before February 16, 2015, then the Company must evidence compliance no later than February 16, 2015.
The Company intends to submit an independent Director nominee to fill the vacancy at its next regularly scheduled annual shareholders meeting to regain compliance within the allowed time period specified.
Forward Looking Statements
This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. These forward-looking statements include, among other things, the statements herein relating to the timing of regaining compliance and the Company's ability to retain additional independent Directors. The Company does not undertake any obligation to update any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.