IRVINE, Calif., Oct. 30 /PRNewswire-FirstCall/ -- Diedrich Coffee, Inc.
(Nasdaq: DDRX) today announced that it submitted a transfer application to the
NASDAQ Stock Market to transfer the listing of its common stock from the
NASDAQ Global Market to the NASDAQ Capital Market. As previously announced,
the Company received two staff deficiency letters from the NASDAQ Stock Market
with respect to its listing on the NASDAQ Global Market. The first letter,
received on October 10, 2008, indicated that based on the Company's
stockholders' equity as reported in its Annual Report on Form 10-K for the
year ended June 25, 2008, the Company was not in compliance with the minimum
stockholders' equity requirement of $10 million for continued listing on the
NASDAQ Global Market as set forth in NASDAQ Marketplace Rule 4450(a)(3). The
second letter, received on October 20, 2008, indicated that for the thirty
consecutive trading days preceding the date of the letter, the Company's
common stock had not maintained a minimum market value of publicly held shares
("MVPHS") of $5 million, and as a result, the Company was not in compliance
with the MVPHS requirement for continued listing on the NASDAQ Global Market
as set forth in NASDAQ Marketplace Rule 4450(a)(2).
If the transfer to the NASDAQ Capital Market is approved, the Company's
common stock will continue to trade under the symbol "DDRX." The NASDAQ Stock
Market operates both the NASDAQ Global Market and the NASDAQ Capital Market.
All companies listed on the NASDAQ Capital Market must meet certain
quantitative listing requirements and adhere to similar corporate governance
standards as companies listed on the NASDAQ Global Market.
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.