MINNEAPOLIS, Oct. 17, 2023 (GLOBE NEWSWIRE) -- Fresh Vine Wine, Inc. (NYSE American: VINE) today announced that it has submitted a plan of compliance to NYSE American LLC (“NYSE American”) addressing how the Company intends to regain compliance with NYSE American’s minimum stockholders’ equity requirements for continued listing. The Company previously announced that it had received notice from NYSE American that it was not in compliance with the continued listing standard set forth in Section 1003(a)(ii) of the NYSE American Company Guide (the “Company Guide”), which requires a listed company that has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years to maintain at least $4 million of stockholders’ equity. The Company reported stockholders’ equity of $2.4 million as of June 30, 2023, and has had losses from continuing operations and/or net losses in each of its fiscal years ended December 31, 2020, 2021 and 2022.
Pursuant to the Company Guide, NYSE American will evaluate the Company’s plan and, within 45 days of receipt of the plan, make a determination as to whether the Company has made reasonable demonstration of an ability to regain compliance with the continued listing standards within the time period prescribed. If the Company’s plan is accepted by NYSE American, the Company will have until March 8, 2025 to regain compliance (or sooner if the NYSE American determines that the nature and circumstances of the Company’s continued listing status warrant a shorter period of time) and will be subject to periodic NYSE American reviews, including quarterly monitoring for compliance with the plan. If the plan is not accepted, the Company will be subject to delisting proceedings as specified in the Company Guide. In addition, if the plan is accepted by NYSE American, but the Company is not in compliance with the continued listing standards by compliance deadline, or if the Company does not make progress consistent with the plan, the Company will be subject to delisting proceedings.
Fresh Vine Wine previously announced that it has initiated an exploration of strategic opportunities by way of merger, acquisition, or any accretive strategic transaction to enhance stockholder value, which is a focus of its plan of compliance. The Company has engaged The Oak Ridge Financial Services Group, Inc. as its exclusive investment banker to lead the process of sourcing and vetting opportunities, and all inquiries should be directed to Oak Ridge Financial.
Micheal Pruitt, Interim Chief Executive Officer, stated, “We have dramatically reduced our expenses since July, sold approximately 70% of our inventory to generate cash, provided more customers the opportunity to experience our wine, and significantly reduced our warehousing cost. We also continue to support our current retail customers and those purchasing via our wine club or from our website. We have and continue to evaluate, a number of opportunities that we believe would allow us to regain compliance with the NYSE American continued listing requirements and create value for our shareholders.”
About Fresh Vine Wine, Inc.
Fresh Vine Wine, Inc. (NYSE American: VINE) is a producer of lower carb, lower calorie premium wines in the United States. Fresh Vine Wine’s brand vision is to lead the emerging natural and accessible premium wine category, as health trends continue to accelerate in the US marketplace. Fresh Vine Wine positions its core brand lineup as an affordable luxury, retailing between $14.99-$24.99 per bottle. Fresh Vine Wine's varietals currently include its Cabernet Sauvignon, Chardonnay, Pinot Noir, Rosé, Sauvignon Blanc, Sparkling Rosé, and a limited Reserve Napa Cabernet Sauvignon. All varietals are produced and bottled in Napa, California.
Note on Forward-looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," and other words of similar meaning. These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Among these risks and uncertainties are those set forth in the Company’s annual report on Form 10-K for the year ended December 31, 2022, and subsequently filed documents with the SEC. In addition to such risks and uncertainties, risks and uncertainties related to forward-looking statements contained in this press release include whether NYSE American will accept the Company’s plan to regain compliance with NYSE American continued listing requirements, the Company’s ability to make progress consistent with such plan, including without limitation identifying and proceeding with a merger, acquisition, or other strategic transaction, the Company’s ability to cure the stockholders’ equity deficiency and regain compliance with the continued listing standards within the prescribed time period, the Company’s ability to otherwise comply with the other NYSE American continued listing standards and the Company’s ability to ultimately maintain the listing of its common stock on NYSE American. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
