AMEX denies SLS compliance plan; delisting expected

The Ozark-based manufacturer of premium loudspeakers and sound systems filed a plan Oct. 4 to regain compliance with AMEX listing standards, but exchange staff did not accept the company’s plan, according to an SLS news release issued late Tuesday.

Since SLS began trading on AMEX in October 2005, the value of its common stock has dropped 87 percent to 20 cents per share. Comparatively, the AMEX Composite Index increased 12.2 percent during the same period.

AMEX plans to strike SLS common stock by filing a delisting application with the Securities and Exchange Commission, according to the release.

SLS has a limited right to appeal the decision and request a ruling hearing before an AMEX committee, but the company must file its appeal by the end of business today.

If SLS stock is delisted from AMEX, the company plans to pursue a stock listing on the Over-the-Counter Bulletin Board, according to the release. SLS was traded on the bulletin board from June 2001 to October 2005. Shares peaked during that time at $4.30 apiece in December 2003.

AMEX required SLS to file its compliance plan by Sept. 27, but the company publicly announced it would file the plan one day after the deadline.

The 18-month plan was to include specific milestones, quarterly financial projections and details related to any strategic initiatives, according to AMEX listing guidelines. Had the plan been accepted, SLS could have remained listed on the exchange, but would have been subject to incremental review.[[In-content Ad]]