KEMET : Announces Noncompliance With NYSE Market Capitalization Standard
01/02/2009| 04:20pm US/Eastern
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GREENVILLE, S.C., Jan. 2 /PRNewswire-FirstCall/ -- KEMET Corporation
(NYSE: KEM) announced today that on December 31, 2008, the Company was
notified by the NYSE Regulation, Inc. that the Company's common stock will be
suspended from trading on the New York Stock Exchange ("NYSE") prior to market
opening on Friday, January 9, 2009. The Company is out of compliance with one
of the NYSE's applicable continued listing standards which requires
maintaining an average market capitalization of not less than $25 million over
a consecutive 30 trading-day period. Previously, the Company had announced
that it had fallen below the NYSE's continued listing standard concerning
share price. While the Company had six months in which to increase the share
price back to compliant levels, NYSE standards do not provide a similar cure
period for noncompliance with the market capitalization requirements. The
Company does not intend to appeal the NYSE's decision and, consequently, it is
expected that the common stock will be delisted from the NYSE following the
NYSE's application to the Securities and Exchange Commission.
The Company expects that, following suspension from the NYSE, its common
stock will continue to trade and be quoted on the Financial Industry
Regulatory Authority's over-the-counter bulletin board (the "OTCBB") and/or on
the Pink Sheets Inc.'s Pink Quote System (the "Pink Sheets"). There will be
no gap in trading from the NYSE to one of the above over-the-counter ("OTC")
markets. The Company will provide a symbol for OTC trading in a few days.
''We expect there to be no disruption in our operations resulting from the
change in our stock trading platform. We continue to be in full compliance
with all of our lending arrangements,'' stated Per Loof, KEMET's Chief
Executive Officer. ''KEMET's commitment is steadfast in bringing value to our
shareholders, producing quality products that are delivered with industry
leading customer service to our customers, remaining a stable partner with our
suppliers, and providing growth opportunity to our employees.''
The delisting from the NYSE does not represent any change in the Company's
current strategic plan. The Company will continue to file periodic and other
reports with the Securities and Exchange Commission under applicable federal
securities laws. Following the move to the OTCBB or Pink Sheets, KEMET will
continue to be in compliance with the trading requirements for its common
stock contained in its existing lending arrangements.
KEMET Corporation (KEM) applies world-class service and quality to deliver
industry-leading, high-performance capacitance solutions to its customers
around the world. KEMET offers the world's most complete line of surface-mount
and through-hole capacitor technologies across tantalum, ceramic, film,
aluminum, electrolytic, and paper dielectrics. Additional information about
KEMET can be found at http://www.kemet.com .
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements
within the meaning of federal security laws about KEMET Corporation (the
"Company") financial condition and results of operations that are based on
management's current expectations, estimates and projections about the
markets, in which the Company operates, as well as management's beliefs and
assumptions. Words such as "expects," "anticipates," "believes," "estimates,"
variations of such words and other similar expressions are intended to
identify such forward-looking statements. These statements are not guarantees
of future performance and involve certain risks, uncertainties and
assumptions, which are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted in, or
implied by, such forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect
management's judgment only as of the date hereof. The Company undertakes no
obligation to update publicly any of these forward-looking statements to
reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially
from those expressed in, or implied by, these forward-looking statements
include, but are not necessarily limited to, availability, sourcing and
pricing of raw materials, pressures on sales prices and volumes due to
competition and economic conditions, reliance on and financial viability of
significant customers, operating performance of joint ventures, alliances and
other equity investments, technological advancements, employee relations,
changes in construction spending, capital expenditures and long-term
investments (including those related to unforeseen acquisition opportunities),
continued availability of financial resources through financing arrangements
and operations, outcomes of pending or threatened legal proceedings,
negotiation of new or modifications of existing contracts for asset management
and for property and equipment construction and acquisition, regulations
governing tax laws, other governmental and authoritative bodies' policies and
legislation, and proceeds received from the sale of assets held for disposal.
In addition to these representative factors, forward-looking statements could
be impacted by general domestic and international economic and industry
conditions in the markets where the Company competes, such as changes in
currency exchange rates, interest and inflation rates, recession and other
economic and political factors over which the Company has no control. Other
risks and uncertainties may be described from time to time in the Company's
other reports and filings with the Securities and Exchange Commission.
Contact:
Dean W. Dimke
Director of Corporate and Investor Communications
954-766-2806
deandimke@kemet.com
William M. Lowe, Jr.
Executive Vice President and Chief Financial Officer
864-963-6484
billlowe@kemet.com
SOURCE KEMET Corporation
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