Life Partners Holdings Announces Receipt of Nasdaq Notice of Deficiency
WACO, Texas--(BUSINESS WIRE)--
Life Partners Holdings Inc. (NASDAQ GS: LPHI), or the "Company,"
announced today that on March 11, 2015, the Company received a letter
from the Nasdaq Listing Qualifications department notifying the Company
that based upon its review of the Company's market value of publicly
held shares ("MVPHS") for the last 30 consecutive business days, the
Company no longer meets Nasdaq's requirement of a minimum MVPHS of $5
million as required by Nasdaq Listing Rule 5450(b)(1)(C). The Company
has a compliance period of 180 calendar days to regain compliance with
Nasdaq's MVPHS requirement.
If at any time during this 180-day compliance period, the Company's
MVPHS closes at $5 million or more for a minimum of ten
consecutive business days, Nasdaq will provide the Company written
confirmation of compliance and this matter will be closed. In the event
the Company does not regain compliance with Rule 5450(b)(1)(C) prior to
the expiration of the compliance period, the Company will receive
written notification that its securities are subject to delisting. At
that time, the Company may appeal the delisting determination.
Alternatively, the Company may apply to transfer its securities to the
Nasdaq Capital Market.
The Company intends to monitor its MVPHS and may, if appropriate,
consider implementing available options to regain compliance with the
MVPHS requirement under the Rules. The Company has submitted a hearing
request relating to its previously disclosed delisting proceedings,
which is scheduled for March 19, 2015. There can be no assurance that
the Company will be successful in its appeal or will be able to regain
compliance with applicable Nasdaq Listing Rules.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: This news release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements that relate to the
intent, beliefs, plans or expectations of the Company or its management,
as well as any estimates or projections for the outcome of events that
have not yet occurred at the time of this news release. All statements
other than statements of historical fact are forward-looking statements.
All forward-looking statements made by the Company are predictions and
not guarantees of future performance, involve material risks and
uncertainties and are subject to change based on factors that are
difficult to predict and that may be beyond the Company's control. Such
factors include, but are not limited to: those described under the "Risk
Factors" section and elsewhere in the Company's Current Report on Form
8-K filed with the Securities Exchange Commission on February 23, 2015
and its most recent Quarterly Report on Form 10-Q filed with the
Securities Exchange Commission on January 14, 2015, as well as in other
past filings with the Securities and Exchange Commission; the risk that
the Company may not be able to successfully comply with Nasdaq's MVPHS
and other requirements within the applicable compliance periods,
including for reasons outside of the Company's control; risks and
uncertainties relating to the bankruptcy filing by the Company,
including but not limited to, (i) the Company's ability to obtain
Bankruptcy Court approval with respect to motions in the Chapter 11
cases, (ii) the ability of the Company and its subsidiaries to
prosecute, develop and consummate a plan of reorganization, (iii) the
effects of the Company's bankruptcy filing on the Company and on the
interests of various constituents, (iv) Bankruptcy Court rulings in the
Chapter 11 cases as well the outcome of all other pending litigation and
the outcome of the Bankruptcy case in general, (v) the length of time
the Company will operate under the Chapter 11 protection, (vi) risks
associated with third party motions in the Chapter 11 cases, which may
interfere with the Company's ability to develop and consummate a plan of
reorganization, (vii) the potential adverse effects of the Chapter 11
proceedings on the Company's liquidity or results of operations, (viii)
the potential adverse effects of the Chapter 11 proceedings on
regulatory and licensing agencies of the Company's primary operating
subsidiary, Life Partners, Inc., and (ix) increased legal costs to
execute the Company's reorganization, and other risks and uncertainties.
The Company cautions that the trading in the Company's securities during
the pendency of the Chapter 11 case is highly speculative and poses
substantial risks. A plan of reorganization could result in the
Company's outstanding common stock to be diluted or extinguished and the
holders of the Company's common stock may not receive any consideration.
Accordingly, the Company's future performance and financial results may
differ materially and/or adversely from those expressed or implied in
any such forward-looking statements. You should not place undue reliance
on forward-looking statements. The Company will not undertake to
publicly update or revise its forward-looking statements even if
experience or future changes make it clear that any projected results
expressed or implied therein will not be realized.
Life Partners Holdings, Inc. is the parent company of the world's
oldest company engaged in the secondary market for life insurance,
commonly called "life settlements." Since its incorporation in 1991,
Life Partners, Inc. has completed over 162,000 transactions for its
worldwide client base of over 30,000 high net worth individuals and
institutions in connection with the purchase of over 6,500 policies
totaling over $3.2 billion in face value.
LPHI Shareholder Relations
Kristen Bickham, 254-751-7797
Source: Life Partners Holdings Inc.
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