Daily Journal Corporation Announces Receipt of Expected Non-Compliance Letter from Nasdaq

Rhea-AI Summary

Daily Journal (DJCO) faces Nasdaq compliance issue due to director's death. The company has until November 28, 2024, to regain compliance by filling the vacant audit committee position.

 

LOS ANGELES, March 14, 2024 (GLOBE NEWSWIRE) -- As previously announced on December 1, 2023, due to the death of director Charles T. Munger, Daily Journal Corporation (NASDAQ:DJCO) notified the Nasdaq Stock Market (“Nasdaq”) that the company’s audit committee has only two members, which is contrary to Nasdaq Listing Rule 5605(c)(2)(A)’s requirement that listed companies have an audit committee of at least three members.

On March 13, 2024, the company received a letter from Nasdaq indicating that the company has a cure period in order to regain compliance as follows:

• until the earlier of the company’s next annual shareholders’ meeting or November 28, 2024; or
• if the next annual shareholders’ meeting is held before May 27, 2024, then the company must evidence compliance no later than May 27, 2024.

The company intends to fill the vacancy on the company’s board of directors and audit committee with a qualified individual who meets the criteria of the Nasdaq listing rules in advance of the compliance deadline.

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Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, and produces several specialized information services. Journal Technologies, Inc. supplies case management software systems and related products to courts and other justice agencies.

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 1934, as amended. Certain statements contained in this press release are “forward-looking” statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as “expects,” “intends,” “anticipates,” “should,” “believes,” “will,” “plans,” “estimates,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents we file with the Securities and Exchange Commission.

 

FAQ

What issue is Daily Journal (DJCO) facing?

Daily Journal (DJCO) is facing a Nasdaq compliance issue due to the death of director Charles T. Munger.

What is the cure period given to DJCO by Nasdaq?

DJCO has until the earlier of the next annual shareholders' meeting or November 28, 2024, to regain compliance.

What is the deadline for DJCO to evidence compliance if the next annual shareholders' meeting is held before May 27, 2024?

If the next annual shareholders' meeting is held before May 27, 2024, DJCO must evidence compliance no later than May 27, 2024.

What steps is DJCO taking to regain compliance?

DJCO intends to fill the vacancy on the board of directors and audit committee with a qualified individual meeting Nasdaq listing rules.