General Employment Enterprises granted extension of impairment plan period
Specifically, the Company is not in compliance with Sections 1003(a)(ii) and 1003(a)(iv) of the NYSE MKT's Company Guide: Stockholders equity is less than $4 million and the Company 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 NYSE MKT, 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.
General Employment's plan of compliance detailing actions which it had to take to regain compliance with stated listing requirements (the "Impairment Plan") was initially accepted by the Exchange on August 27, 2013, granting the Company until October 7, 2013 (the "Impairment Plan Period") to regain compliance with 1003(a)(iv). On October 29, 2013, the NYSE MKT granted the Company an extension of the Impairment Plan Period until February 21, 2014. Based on a review of information provided by the Company through March 12, 2014, the Exchange then granted General Employment an extension to the end of March. The targeted completion date is now March 31, 2014 to improve the overall financial condition and comply with 1003(a)(iv) and until June 6, 2014 to increase the equity to a minimum of $4 million and comply with 1003(a)(ii).
The Company's common stock continues to trade on the NYSE MKT stock exchange under the symbol "JOB," but will become subject to the trading symbol extension ".LF" to denote non-compliance with the NYSE MKT's continued listing standards.
Commenting on the Company's status, Andrew J. Norstrud, Chief Executive Officer, stated, "We have made significant progress in the past year to restructure the Company. We have invested in the infrastructure that will secure our future in this industry and enable us to implement our growth strategy. Although we are approximately six months behind in completing the restructuring, it was an aggressive plan that management adopted this past July and we are satisfied with our progress." Mr. Norstrud also commented, "We are grateful to the NYSE for providing the time necessary to regain our compliance as we continue to make the necessary infrastructure changes to rebuild the foundation of General Employment Enterprises, Inc."
More information on this release can be found on file with the Securities & Exchange Commission at www.sec.gov.