CHEYENNE, Wyo., June 26 -- Great Lakes Aviation, Ltd. (Nasdaq: GLUX - News) announced today that it has received notice from Nasdaq that it intends to delist the Company's securities from the Nasdaq SmallCap Market at the opening of business on June 28, 2002, due to non-compliance with applicable continued listing criteria for either the minimum net tangible assets or minimum stockholders' equity as stated in Marketplace Rule 4310(c)(2)(B).
In response to the notice, Great Lakes Aviation has requested a hearing before a Nasdaq Listings Qualification Panel to contest the delisting of its shares from the Nasdaq SmallCap Market. The hearing request will stay the delisting of Great Lakes Aviation's securities pending the Nasdaq Listing Qualification Panel's decision. The company intends to submit a specific plan in oral and written presentations to Nasdaq that includes a significant financial restructuring of the company and also enables the company to attain compliance with the listing criteria. Nasdaq may not accept Great Lakes Aviation's arguments in favor of continued listing, in which case, Great Lakes Aviation's securities would be delisted and no longer be able to be traded in the Nasdaq SmallCap Market.
If Great Lakes Aviation's securities do not continue to be listed on the Nasdaq SmallCap Market, such securities would become subject to certain rules of the SEC relating to "penny stocks." Such rules require broker-dealers to make a suitability determination for purchasers and to receive the purchaser's prior written consent for a purchase transaction, thus restricting the ability to purchase or sell the securities in the open market. Additionally, trading, if any, would be conducted in the over-the-counter market in the so-called "pink sheets" or on the OTC Bulletin Board, which was established for securities that do not meet the Nasdaq listing requirements. Selling Great Lakes Aviation shares would be more difficult because transactions could be delayed, and security analyst and news media coverage of Great Lakes Aviation may be reduced. These factors could result in lower prices and larger spreads in the bid and ask prices for Great Lakes Aviation shares.
Certain matters discussed in this press release contain forward-looking terminology such as "intends" which is made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1955. Although Great Lakes Aviation believes the expectations reflected in any forward- looking statement are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include general industry conditions, changes in local or national economic conditions, changes in public subsidy rates for the Essential Air Service Programs, changes in relationships with its code-sharing partners and other risks, including those detailed from time to time in the Company's SEC reports, including the Company's Form 10-K for the year ended December 31, 2001 and Form 10-Q for the three months ended March 31, 2002.