SEBASTOPOL, Calif., March 28, 2002 (PRIMEZONE) -- ZAP (Nasdaq:ZAPPQ) today announced that on March 21, 2002, the listing qualifications section of Nasdaq notified ZAP that Nasdaq intends to delist ZAP from The Nasdaq Stock Market for failure to comply with Marketplace Rules 4330(a)(1), 4330(a)(3), 4310(c)(2)(B and 4310(c)(13).
The Nasdaq delisting notice stated their determination was based on concerns raised by ZAP's recent filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code, concerns regarding the residual equity interest of the existing listed security holders, and ZAP's failure to meet quantitative requirements for continued Nasdaq listing. The Nasdaq staff noted that ZAP does not meet the minimum net tangible assets and stock holder's equity requirements. In addition, ZAP has failed to pay $23,335 in listing fees due to Nasdaq dating from the third quarter of 2001. Finally, the Nasdaq staff noted that the company's bid price of its common stock had closed below the $1 per share minimum requirements, required by Marketplace Rule 4310(c)(4), for more than thirty days.
ZAP had notified the Nasdaq staff that the company is currently exploring various strategic alternatives for the company, including, among other things, merging with private automotive and distribution companies, as part of their plan of reorganization, in order to increase the company's equity and assets.
The Nasdaq staff has determined to delist the company's securities from The Nasdaq Stock Market on the opening of business of April 1, 2002, subject to the company's right to appeal the delisting of its securities from Nasdaq and a hearing. ZAP has requested a hearing before a Nasdaq Listing Qualifications Panel to review the staff determination. ZAP expects that its request for a hearing will stay the delisting process pending the Panel's decision. ZAP cannot be sure that the Panel will grant the company's request for continued listing.