FORT LAUDERDALE, Fla., March 12 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced that the Nasdaq Listing
Qualifications Panel (Panel) has determined to grant the request of Parlux
for continued listing on The Nasdaq Stock Market, subject to the condition
imposed by the Panel that, on or before March 31, 2007, Parlux shall file
its Form 10- Q for its second fiscal quarter ended September 30, 2006 and
its Form 10-Q for its third fiscal quarter ended December 31, 2006.
Although Parlux is diligently working to file its late reports on Form
10- Q with the Securities and Exchange Commission (SEC) as soon as it can,
it is possible that Parlux will be unable to meet the March 31, 2007
deadline imposed by the Panel to file its late reports on Form 10-Q. The
Panel has indicated that it is unwilling to grant additional time or
further extensions to Parlux. If Parlux does not file its late reports on
Form 10-Q on or before March 31, 2007, it will receive notice of the
immediate suspension of its securities from trading on, and its common
stock may be delisted from, The Nasdaq Stock Market. In that event,
Parlux's common stock may be quoted in the future on the OTC Bulletin
Board, provided that a market maker files the necessary application with
the NASD and such application is cleared.
As most recently reported in Parlux's Notification of Late Filing on
Form 12b-25 filed with the SEC on February 12, 2007, the filing of its
reports on Form 10-Q for the fiscal quarters ended September 30, 2006 and
December 31, 2006 has been delayed pending the completion of an independent
investigation by special counsel and independent forensic accountants
engaged by Parlux's Audit Committee. The investigation is focused on, and
was the result of, allegations made in a Consolidated Amended Class Action
Complaint filed on November 8, 2006, including, among others, that Parlux
improperly recognized revenue on sales to related parties and failed to
comply with SEC disclosure rules. The investigation is nearing completion.
Based on the findings of the investigation to date, Parlux expects that the
investigation will conclude that there is no merit to any of the
allegations. Before Parlux can file its late reports on Form 10-Q for the
two quarterly periods, its independent auditor will have to be satisfied
with the scope and conclusions of the investigation. Parlux's independent
auditor is in the process of reviewing the scope and findings of the
investigation to date. In the meantime, Parlux is diligently working to
complete its late reports on Form 10-Q. Parlux's independent auditor also
has started to review the reports so that Parlux may be able to file the
reports with the SEC shortly following the completion of the investigation.
As previously reported, on February 14, 2007, the United States
District Court for the Southern District of Florida entered an order
granting the motion of the defendants, including Parlux, to dismiss the
Amended Class Action. The Court held that the allegations in the Amended
Class Action failed to meet the pleading requirements applicable to the
case. This dismissal was without prejudice to the filing of another amended
complaint by the plaintiffs, however, the plaintiffs did not file another
amended complaint within the time period set by the Court. As a result, the
plaintiffs now are unable to file another amended complaint.
Parlux intends to request a review by the Nasdaq Listing and Hearing
Review Council (Council) of the Panel's decision to impose the March 31,
2007 deadline, and as to other aspects of the Panel's decision. There can
be no assurance that the Council will grant an extension of that deadline,
or that the request for a review will be considered or acted upon by the
Council prior to the deadline passing, or that Parlux can achieve full
compliance with all requirements of The Nasdaq Stock Market. Making the
request for a review with the Council will not stay the suspension and
likely delisting of Parlux's common stock from The Nasdaq Stock Market if
its late reports on Form 10-Q are not filed on or before March 31, 2007.
About Parlux Fragrances, Inc.
Parlux Fragrances, Inc. is a manufacturer and international distributor
of prestige products. It holds licenses for Paris Hilton fragrances,
watches, cosmetics, sunglasses, handbags and other small leather
accessories in addition to licenses to manufacture and distribute the
designer fragrance brands of GUESS?, XOXO, Ocean Pacific (OP), Maria
Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
Certain Information Regarding Forward Looking Statements
This press release includes 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 1034, as amended, regarding,
among other things, our plans, strategies and prospects, both business and
financial. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance
or achievements of Parlux or its industry to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. These risks and uncertainties include,
among others, that the ongoing forensic accounting investigation will be
completed promptly with no materially adverse conclusions, and that Parlux
will be able to file the late reports on Form 10-Q with the SEC in time to
continue to maintain the listing of its common stock on The Nasdaq Stock
Market. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. Parlux
undertakes no obligation to publicly release the result of any revision to
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com/
http://www.prnewswire.com/comp/674987.html/
CONTACT:
Neil Katz, Chief Executive Officer of Parlux
Fragrances, Inc., +1-954-316-9008
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