BELLEVUE, Wash., March 16, 2010 (GLOBE NEWSWIRE) -- drugstore.com, inc. (Nasdaq:DSCM), a leading online retailer of health, beauty, vision, and pharmacy products, today announced that on March 16, 2010, the company filed its annual report on Form 10-K with the Securities and Exchange Commission. In its Form 10-K, drugstore.com disclosed that it had inadvertently failed to comply with one of the Nasdaq Global Market listing standards, but that the staff of the Nasdaq Listing Qualifications Department notified the company that as of the filing date it had regained compliance with the applicable rule.
On March 10, 2010, drugstore.com, inc. notified the NASDAQ staff pursuant to Nasdaq Listing Rule 5625 that it had recently discovered that it was not compliant with Rule 5635(c) of the Corporate Governance Requirements of the Nasdaq Listing Rules. Specifically, drugstore.com informed NASDAQ that the share limit set forth in the drugstore.com, inc. 2008 Equity Incentive Plan was exceeded as a result of the inadvertent and incorrect application of the 2008 Plan's share reserve provisions.
In its notification to NASDAQ, drugstore.com set forth its plan to regain compliance with Rule 5635(c) by making the release and delivery of (i) unvested shares subject to certain restricted stock awards and (ii) the unvested portion of certain stock options and stock appreciation rights contingent on receipt of approval by the company's stockholders of an appropriate amendment to the 2008 Plan at the company's next annual meeting of stockholders to be held on or before June 10, 2010.
On March 15, 2010, drugstore.com notified affected award recipients of the contingent status of certain of their equity awards. NASDAQ subsequently notified drugstore.com that effective upon the company's notification to affected award recipients, it was once again in compliance with the Nasdaq Listing Rules.
This public announcement is being made in compliance with NASDAQ's Rule 5810(b).
About drugstore.com, inc.
drugstore.com, inc. (Nasdaq:DSCM) is a leading online retailer of health, beauty, clinical skincare, vision, and pharmacy products. Our portfolio of brands includes: drugstore.com™, Beauty.com™, Skinstore.com™, and VisionDirect.com™. All provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 45,000 products at competitive prices. The drugstore.com pharmacy, DS Pharmacy Inc., is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and operates in compliance with federal and state laws and regulations in the United States.
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