DALLAS, TX -- 11/06/09 --
Natural Health Trends Corp. (NASDAQ: BHIP), an
international direct selling company, today announced that it has decided
not to pursue a costly appeal of a delisting notice it received from The
Nasdaq Stock Market on November 2, 2009. This decision was reached as part
of the Company's overall strategy to improve cost-effectiveness and focus
its resources on revenue-generation activities and support for member
activities.
The Company's planned revenue-generating and support activities include
product introductions in its wellness, beauty and lifestyle categories, as
well as new incentive programs and exciting events to offer a platform for
reward and recognition for the Company's members. The Company is
committing its management, support and capital to activities designed to
drive revenue, new member acquisition and existing member retention.
On November 2, 2009, the Company received a letter from the staff of The
Nasdaq Stock Market advising the Company that it will be delisted from the
Nasdaq Capital Market because it no longer complies with Listing Rule
5550(b), which requires the Company to have a minimum of $2.5 million in
stockholders' equity or $35.0 million market value of listed securities or
$500,000 of net income from continuing operations for the most recently
completed fiscal year or two of the three most recently completed fiscal
years.
After considering a number of factors, including the expenditure of
resources necessary to regain compliance with Nasdaq's Listing Rule within
Nasdaq's timeframe and then maintaining its Nasdaq listing, the Company has
decided not to appeal Nasdaq's delisting determination or undertake
expensive or dilutive attempts to regain compliance with Nasdaq's minimum
equity rule.
"Our decision is not taken lightly," said Chris Sharng, President of
Natural Health Trends Corp. "After extensive cost reductions and
restructuring, the Company's business is well positioned to benefit from
the excitement and growth that we are seeing in our international markets.
We recently hosted a highly successful grand opening event in Moscow,
generating great momentum for our nascent Russian business. Our Korean
business is on an upswing, and we are about to commemorate a milestone
anniversary at our 8th Anniversary Celebration event in Hong Kong."
"We are looking at substantial opportunities that will require us to focus
our cash on the business. Because there are alternative trading markets
that can provide liquidity for the Company's common stock, we believe that,
maintaining the Nasdaq listing, while desirable, does not rank as high in
priority as taking advantage of these opportunities and supporting our
members who drive the business. We may consider re-applying for a Nasdaq
listing at a future date when market conditions and the size of our company
warrant the expense."
As a result of the delisting notice, beginning November 11, 2009, the
Company's common stock will no longer be traded on the Nasdaq Capital
Market, but will continue to be quoted on the Pink Sheets, a centralized
electronic quotation service run by Pink OTC Markets Inc. for
over-the-counter securities. Because the Company intends to continue filing
current, quarterly and annual reports with the Securities and Exchange
Commission, it believes it qualifies for listing on the OTCQX, which is the
premier tier of the over-the-counter market run by Pink OTC Markets, Inc.
The Company is presently evaluating a listing on the OTCQX, and until a
listing application is filed and accepted, the Company's common stock will
be quoted on the Pink Sheets Current Information Tier under the ticker
symbol "BHIP."
About Natural Health Trends Corp.
Natural Health Trends Corp. is an international direct-selling and
e-commerce company operating through its subsidiaries throughout Asia,
North America, and Europe. The company markets premium quality personal
care products under the NHT Global brand. Additional information can be
found on the company's website, and management encourages interested
parties to register for updated corporate information via email on the
company's home page, www.naturalhealthtrendscorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 -- Forward-looking statements in this release do not constitute
guarantees of future performance. Such forward-looking statements are
subject to risks and uncertainties that could cause our actual results to
differ materially from those anticipated. Such risks and uncertainties
include the risks and uncertainties detailed under the caption "Risk
Factors" in our Annual Report on Form 10-K filed on March 23, 2009, with
the Securities and Exchange Commission ("SEC"), and our Quarterly Report on
Form 10-Q filed on August 14, 2009, with the SEC. We assume no obligation
to update any forward-looking information contained in this press release
or with respect to the announcements described herein.
For Information Contact:
Jean Bono
Natural Health Trends Corp.
Email Contact
