Innovo Group accepts Nasdaq notification letter

01 Jul '06

2 min read

Innovo Group Inc announced that on June 30, 2006, the Company received a letter from the Nasdaq Stock Market indicating that the Company is not in compliance with Marketplace Rule 4310(c)(4) (the "Bid Price Rule") because the closing bid price per share of its common stock has been below $1.00 per share for 30 consecutive trading days.

In accordance with Marketplace Rule 4310(c)(8)(D), the Company will be provided with 180 calendar days, or until December 27, 2006, to regain compliance with the Bid Price Rule. This notification has no impact on the listing of its common stock at this time.

To regain compliance with the Bid Price Rule, the closing bid price of the Company's common stock must remain at $1.00 per share or more for a minimum of ten consecutive trading days.

If the Company does not regain compliance with the Bid Price Rule by December 27, 2006, Nasdaq will determine whether the Company meets The Nasdaq Capital Market initial listing criteria set forth in Marketplace Rule 4310(c), except for the bid price requirement.

If it meets the initial listing criteria, Nasdaq will notify the Company that it has been granted an additional 180 calendar day compliance period. If the Company is not eligible for an additional compliance period, Nasdaq will provide the Company with written notification that its common stock will be delisted.

At that time, the Company may appeal Nasdaq's determination to delist its common stock to the Listings Qualifications Panel.

Innovo Group Inc, through its operating subsidiary Joe's Jeans Inc, is a design and sales organization designing, producing and selling apparel products to the retail and premium markets under the Joe's and Joe's Jeans brands.

Under these brands, the Company's apparel products consist of men's and women's denim and denim-related apparel products.

Innovo Group Inc

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