Golfsmith International Holdings Inc announced that on January 23, 2008 the Company received a Nasdaq Staff Deficiency Letter indicating that it no longer complies with the Nasdaq audit committee requirement for continued listing as set forth in Marketplace Rule 4350, which requires a listed company to have an audit committee of at least three independent directors.
Consistent with this Rule, Nasdaq provided the Company with a cure period until July 7, 2008 in order to regain compliance.
On January 9, 2008, Martin E. Hanaka, the Company's Chairman, was appointed as its interim Chief Executive Officer.
Upon taking this position, Mr. Hanaka stepped down as a member of the Audit Committee in order to comply with the audit committee independence requirement as set forth in NASDAQ Marketplace Rule 4350, leaving two directors on that Committee.
The Company expects to fill the vacancy created by Mr. Hanaka's resignation from the Audit Committee prior to July 7, 2008.
Golfsmith International Holdings Inc