SYNERGY BRANDS ANNOUNCES PLAN TO TRADE ON OTCQX MARKET
Expects $500,000 in Annual Savings:
Will delist from Nasdaq on 10/2/2009.
Synergy Brands, Inc. (NASDAQ:SYBR) Syosset, NY. September 2008.
Synergy Brands today announced that the Board has approved a relocation from
Nasdaq to the OTCQX tier market and the deregistration of Synergy Brands. The
Company plans to list its stock on the OTCQX market subject to listing approval.
Synergy has been notified by Nasdaq of pending delisting because of the lack of
the Company maintaining a $1 bid price, a criteria presently in this turbulent
market that the Company feels is unrealistic as a standard of evaluation, and
the failure perceived by the Company of recognition by Nasdaq of the Company's
value together with what the Company feels are exorbitant expenses of remaining
on Nasdaq, coupled with the additional applicable regulations related to
Sarbanes Oxley compliance costs, both of which the Company could save, make it
more attractive for Synergy to accept delisting and to deregister from mandated
Exchange Act compliance and as an alternative to list and trade on the OTCQX
market . Deregistration is subject to certain regulatory requirements toward
which the Company is currently preparing to comply. Synergy believes that its
current positive operating performance and positive cash flow and profit results
have not been recognized by the markets and further believes that the NASDAQ
market benefits do not justify the expenses associated with the listing. The
company is projecting a savings of $500,000 annually that can be achieved for
shareholders. Management further believes that the market it is choosing should
continue to allow shareholders to seamlessly trade their shares while also
continuing to receive the same basic financial information as is currently
dispensed to all shareholders. The Company's official delisting date from Nasdaq
will be October 2, 2008.
Mair Faibish, president of Synergy Brands, Inc. in statement said that "At a
time when Synergy Brands, Inc. is experiencing rapid sales growth and
operational profitability it is important that we do not consider a reverse
split that would be required to remain on Nasdaq". He added that "We valued our
Nasadq listing but believe that the regulatory cost saving is also a significant
factor in reaching the decision to relocate our trading market to OTCQX" He
further added that "Synergy can benefit from the OTCQX market and hopes that
shareholder value can reach its potential in this rapidly evolving market". For
more information on this market go to their website www.otcqx.com
Forward-looking statements:
This press release and Company review and assumptions made regarding the
financial figures and other information, referenced and presented, state and
reflect assumptions, expectations, projections, intentions and/or beliefs about
past and future events that are intended as "forward-looking statements" under
the Private Securities Litigation Reform Act of 1994. You can identify these
statements by the fact that they do not relate to historical or current facts.
They use words such as "anticipate", "estimate", "project", "forecast", "may",
"will", "should", "expect", "assume", "believe" and other derivations thereof
and other words of similar meaning. In particular, these include, but are not
limited to, statements reflecting the projected business activities and goals,
revenues, earnings, non-GAAP measures of operations, profit and loss of the
Company and associated costs. Any or all of the Company's forward-looking
statements may turn out to be wrong. They can be affected by inaccurate
assumptions or by known or unknown risks or uncertainties. For a description of
many of these risks and uncertainties, please refer to the Company's filings
with the U.S. Securities & Exchange Commission (ww.sec.gov) including Forms 10K
and 10Q that can be found at www.sybr.com.
Contact: Beverly Jedynak
Martin E. Janis & Company, Inc.
312-943-1123
bjedynak@janispr.com