Guilford Mills, Inc. announced that trading in its common stock on the New York Stock Exchange (NYSE) will be suspended immediately in light of the Company's non-compliance with certain NYSE continued listing standards. As previously disclosed by the Company, the average closing price of the Company's common stock has fallen below $1.00 per share, and the Company's market capitalization has fallen below $15 million, over a consecutive 30 trading day period. While the Company submitted to the NYSE a business plan for purposes of showing that the Company's common stock would return to compliance with listing requirements, the NYSE did not accept such plan. The NYSE intends to delist the common stock pending completion of applicable procedures. The Company is making application to have its common stock quoted on the OTC Bulletin Board (OTCBB) within the next several days. If the Company's common stock is accepted for quotation on the OTCBB, then the stock will have a new ticker symbol. The Company will notify shareholders by press release of the assignment of a new ticker symbol. The OTCBB is a regulated quotation service that displays real time quotes, last sale prices and volume information in over-the-counter equity securities. An over-the-counter equity security generally is any equity security that is not listed or traded on NASDAQ or a national securities exchange. OTCBB securities are traded by a community of registered market makers that enter quotes through a computer network. Information regarding the OTCBB can be found at http://www.otcbb.com. Currently, the Company's common stock may be quoted in "The Pink Sheets," a centralized quotation service that collects and publishes market maker quotes for over-the-counter securities. Investors should be aware that trading in the Company's common stock through market makers and quotation on the OTCBB entails risk. For example, market makers may not be able to execute trades as quickly as when the stock was listed on the NYSE. Please contact your broker if you have further questions about executing trades.
Guilford Mills is an integrated designer and producer of value-added fabrics using a broad range of technologies. The Company is one of the largest warp knitters in the world and is a leader in technological advances in textiles, including microdenier warp knits and wide width circular knits of cotton blended with LYCRA(R). Guilford Mills serves a diversified customer base in the home furnishings, apparel, automotive and industrial markets. Through its Guilford Home Fashions subsidiary, the company produces bedding products, window treatments and shower curtains for the retail market. From time to time, the Company may publish forward-looking statements relative to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements.
This press release may be deemed to contain forward-looking statements and other projections within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The Company assumes no obligations to update or revise any such forward-looking statements. Such statements could be subject to risk and uncertainty that exist in the operations of the Company and the business environment that could render actual outcomes and results materially different from those predicted. These risks and uncertainties include, without limitation and in no particular order, the following factors as well as risks and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission:
1. general economic factors including, but not limited to, changes in interest rates, foreign currency translation rates, consumer confidence, housing starts, trends in disposable income, changes in consumer demand for goods produced, and cyclical or other downturns 2. the overall level of automotive production and the production of specific car models 3. fashion trends 4. information and technological advances 5. cost and availability of raw materials, labor and natural and other resources 6. domestic and foreign competition 7. domestic and foreign governmental regulations and trade policies 8. reliance on major customers 9. success of marketing, advertising and promotional campaigns 11. inability to achieve cost reductions through consolidation and restructuring or 12. inability to obtain financing on favorable terms or to obtain amendments or waivers with respect to non-compliance with certain covenants in loan agreements 13. the adverse impact of the receipt of the independent auditor's "going concern" opinion on the Company's customer and supplier relationships, including less favorable trade credit terms.
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