MOORE, Okla., March 17, 2010 (GLOBE NEWSWIRE) -- As previously reported, on September 15, 2009, Vaughan Foods, Inc. (Nasdaq:FOOD) (the "Company") received notice from the NASDAQ Listing Qualifications Department that its common stock has failed to maintain a minimum bid price of $1.00 per share over a period of 30 consecutive trading days, as required by NASDAQ Listing Rule 5550(a)(2). In accordance with Listing Rule 5810(c)(3)(A), the Company was provided with a grace period of 180 calendar days, or until March 15, 2010, to regain compliance with this requirement. To regain compliance, the Company's common stock must have achieved a closing bid price of at least $1.00 for a minimum of ten consecutive trading days.
The Company received a notice on March 16, 2010, that it had not regained compliance with the Rule and is not eligible for an additional 180 calendar day compliance period given that it does not meet the the Nasdaq Capital Market initial listing standard set forth in Listing Rule 5505. Accordingly, its securities will be delisted from The Nasdaq Capital Market on March 24, 2010.
The company does not intend to appeal NASDAQ's expected action to delist the Company's stock since it believes its efforts are better directed towards improving the Company's performance and executing its business plan. Accordingly, management has initiated contact with NASDAQ to effect an orderly transition of trading to the OTC Bulletin Board prior to the delisting event.
The Company is working with Paulson Investment Company, which will serve as the initial market maker for the Company's shares on the OTC Bulletin Board. Management anticipates that following its NASDAQ delisting, the Company's shares will be quoted on the OTC Bulletin Board® ("OTCBB"). Paulson Investment Company has made an application to register in and quote the security in accordance with SEC Rule 15c2-11, and such application (a "Form 211") has been cleared.
The Company expects that its common stock will continue to trade on the OTCBB so long as Paulson Investment Company and any other market makers demonstrate an interest in trading the common stock. The Company will continue to file periodic reports with the SEC pursuant to the requirements of Section 12(g) of the Securities Exchange Act of 1934, as amended.
About Vaughan Foods, Inc.
Vaughan Foods is an integrated manufacturer and distributor of value-added, refrigerated foods. We are uniquely able to distribute fresh-cut produce items along with a full array of value-added refrigerated prepared foods multiple times per week. We sell to both food service and retail sectors. Our products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes. Our primary manufacturing facility is in Moore, Oklahoma. Our soups and sauces are manufactured in our facility in Fort Worth, Texas.
The Vaughan Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4726
Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Vaughan Foods, Inc. based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-Q and other reports filed with the Securities and Exchange Commission. Furthermore, Vaughan Foods, Inc. undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.