Fresh Vine Wine, Inc. Submits Plan Of Compliance To NYSE American

Author: Happy Mohamed | October 17, 2023 08:19am

Fresh Vine Wine, Inc. (NYSE: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."

Posted In: VINE