General Employment Enterprises on downturn
General Employment Enterprises has announced that it received a letter from NYSE MKT, LLC which stated it's equity was less than $4 million.
The letter also confirmed its has sustained losses from continuing operations and/or net losses in three of its four most recent fiscal years and, in the opinion of the Exchange, it is questionable as to whether the company will be able to continue operations and/or meet its obligations as they mature based on its current overall financial condition.
On October 29, 2013, the company received a letter from the NYSE MKT stating that, based on the review of the information provided by the company, the company has made significant progress towards regaining compliance with Section 1003(a)(iv) of the company Guide. Based on the company's progress to date and actions the company plans to implement in the future, in accordance with Section 1009 of the company guide, the NYSE MKT has determined to extend the Financial Impairment Plan Period, which allowed the company to demonstrate its ability to regain compliance with Section 1003(a)(iv) of the company Guide by October 7, 2013. The Financial Impairment Plan Period was extended until February 21, 2014. The plan period for the company to regain compliance with Section 1003(a)(ii) remains June 6, 2014. The foregoing is subject to the company making a public announcement by November 4, 2013, continuing to provide updates to the NYSE MKT staff and continuing to show progress in regaining compliance.
Commenting on the company's status, CDO Andrew Norstrud, stated, "We continue to execute our business plan in order to return to compliance with the NYSE MKT rules and regulations." Mr. Norstrud also commented, "This initial phase of our business plan is to stabilize the foundation of our company and then enable us to implement our aggressive strategic growth initiatives."
In addition, the company announced the resignation of Michael Schroering as chief executive officer and as chairman of the board to pursue his other business interests. Mr. Schroering will continue as a board member.
Mr. Norstrud stated, "We thank Michael for his work over this past year and his involvement in the development and execution of our business plan. We have made a significant impact on the Company and everyone is excited about the prospect of a very successful 2014 as we eliminate the one time expenses and make the necessary changes to return the Company to profitability."