IRVINE, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Diedrich Coffee, Inc.
(Nasdaq: DDRX) today announced that it received a Nasdaq Staff Deficiency
Letter on October 20, 2008 indicating that for the last thirty consecutive
trading days, the Company's common stock has not maintained a minimum market
value of publicly held shares (MVPHS) of $5 million, and as a result, the
Company does not comply with the MVPHS requirement for continued listing on
the NASDAQ Global Market as set forth in NASDAQ Marketplace Rule 4450(a)(2).
In light of extraordinary market conditions, NASDAQ has suspended enforcement
of the bid price and MVPHS requirements through January 16, 2009. These rules
will be reinstated on Monday, January 19, 2009. Upon reinstatement, and in
accordance with NASDAQ Marketplace Rule 4450(e)(1), the Company will have
until April 20, 2009 to comply with Rule 4450(a)(2), which is demonstrated by
the Company's MVPHS equaling or exceeding $5 million for a minimum of 10
consecutive trading days.
As described in the Company's press release issued on October 15, 2008,
the Company received a staff deficiency letter on October 10, 2008 with
respect to the Company's non-compliance with the minimum stockholders' equity
requirement of $10 million as set forth in NASDAQ Marketplace Rule 4450(a)(3).
As previously disclosed, the Company is in the process of preparing a response
to NASDAQ's request for a plan to achieve and sustain compliance with NASDAQ
Global Market listing requirements.
About Diedrich Coffee
With headquarters in Irvine, California, Diedrich Coffee specializes in
sourcing, roasting and selling the world's highest quality coffees. The
Company's three brands are Diedrich Coffee, Gloria Jean's Coffees and Coffee
People. Diedrich Coffee sells its coffees through wholesale accounts including
office coffee service distributors, restaurants and specialty retailers, and
via the Company's web stores. As of June 25, 2008, the Company also has 123
retail outlets, the majority of which are franchised, located in 28 states.
For more information about Diedrich Coffee, call (800) 354-5282, or visit the
Company's web sites at http://www.diedrich.com or http://www.gloriajeans.com.
Forward Looking Statements
Statements in this news release that relate to future plans, financial
results or projections, events or performance are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, and fall
under the safe harbor. Actual results and financial position could differ
materially from those anticipated in the forward-looking statements as a
result of a number of factors, including, but not limited to, the financial
and operating performance of the Company's wholesale operations, the Company's
ability to maintain profitability over time, the successful execution of the
Company's growth strategies, franchisee's adherence to the Company's
practices, policies and procedures, the impact of competition, the
availability of working capital, and other risks and uncertainties described
in detail under "Risk Factors and Trends Affecting Diedrich Coffee and its
Business" in the Company's annual report on Form 10-K for the fiscal year
ended June 25, 2008.
Information Contact:
Sean McCarthy
Chief Financial Officer
(949) 260-6734
SOURCE Diedrich Coffee, Inc.