Nasdaq Moves to Delist Universal Automotive

Universal Automotive Industries, Inc., the manufacturer and distributor of brake parts for the automotive aftermarket, has announced that the Nasdaq stock exchange intends to delist its stock.
On June 29, 2001 the company received notification from Nasdaq that it did not meet the $2,000,000 U.S. minimum net tangible assets requirement of the exchange.
As a result, Nasdaq intends to delist the Company’s common stock and convertible warrants effective July 9, 2001, subject to an appeal process, which could delay that move.
The company reports that it has submitted an appeal with Nasdaq’s Hearing Panel requesting a hearing into this matter. Once officially received by Nasdaq, the hearing request will automatically defer the delisting until the panel makes a ruling.
A key part of the company’s presentation will be a letter of intent by an as yet unnamed company calling for the issuance of $2,800,000 U.S. of preferred stock, convertible into 1,400,000 shares of common stock, subject to certain anti-dilution adjustments. The letter of intent calls for a closing within 30 days of execution and is subject to completion of due diligence and preparation of mutually satisfactory definitive documentation.