Hallmark Financial Announces Notice from Nasdaq

Rhea-AI Summary

On May 13, 2020, Hallmark Financial (NASDAQ: HALL) received notice from Nasdaq for failing to timely file its Form 10-Q for Q1 2020 and being delinquent on its Form 10-K for 2019. This non-compliance with Nasdaq's Listing Rule 5250(c)(1) requires the Company to submit a plan to regain compliance by May 28, 2020. Although the notice does not immediately affect Hallmark's stock listing, failure to comply could lead to delisting. The Company aims to file the necessary reports by June 2020, though COVID-19 may cause delays.

Positive

• Hallmark Financial intends to submit a compliance plan to Nasdaq by the deadline.
• The notice from Nasdaq has no immediate effect on Hallmark's stock listing.

Negative

• Failure to regain compliance by Nasdaq's deadline could result in delisting.
• The Company is behind on filing both its Form 10-Q and Form 10-K.
• COVID-19 may cause further delays in filing required documents.

DALLAS, May 15, 2020 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (“Hallmark Financial” or “the Company”) (NASDAQ: HALL), a specialty property and casualty insurance company, today announced that it received notice from Nasdaq on May 13, 2020 that, as a result of the Company’s failure to timely file its Form 10-Q for the period ended March 31, 2020 and because it remains delinquent in filing its Form 10-K for the year ended December 31, 2019, the Company is not in compliance with Nasdaq’s Listing Rule 5250(c)(1).  As a result, the Company has until May 28, 2020 to submit an update to its original plan to regain compliance with the filing requirements.  If such updated plan is accepted, Nasdaq may grant an extension until up to September 14, 2020, to regain compliance.

The notice from Nasdaq has no immediate effect on the listing of the Company’s common stock on the Nasdaq Global Market. 

The Company intends to timely submit a plan to regain compliance with Nasdaq’s listing rules and to work diligently to regain compliance with such listing rules within any extension period granted by Nasdaq.  However, there can be no assurance that Nasdaq will accept the Company’s plan to regain compliance or that the Company will be able to regain compliance within any extension period granted by Nasdaq.  If the Company fails to timely regain compliance with Nasdaq’s listing rules, the common stock of the Company will be subject to delisting on the Nasdaq Global Market.

The Company presently expects to file its Form 10-K for the year ended December 31, 2019 in June 2020, and to file its Form 10-Q for the quarter ended March 31, 2020 within several weeks thereafter.  However, unforeseen issues could arise that would delay these projected filing dates.  Further, the current COVID-19 pandemic creates additional uncertainties regarding the availability of personnel and physical access to materials that could also delay these projected filing dates.

About Hallmark Financial

Hallmark Financial is a specialty property and casualty insurance company with a diversified portfolio of insurance products written on a national platform. With six insurance subsidiaries and offices in Dallas-Fort Worth, Atlanta, Chicago, Jersey City, and San Antonio, Hallmark Financial markets, underwrites and services over $750 million annually in commercial and personal insurance premiums in select markets. Hallmark Financial is headquartered in Dallas, Texas and its common stock is listed on NASDAQ under the symbol "HALL".  

This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to the Company’s intent to regain compliance with Nasdaq’s continued listing standards.  These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions, many of which are beyond the control of the Company.  Although the Company believes the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be correct.  In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of the Company will be achieved.

Investor Contact
David Webb
Senior Vice President, Corporate Development & Strategy
dwebb@hallmarkgrp.com
817.348.1600

FAQ

What did Hallmark Financial announce on May 13, 2020?

Hallmark Financial announced that it received a notice from Nasdaq regarding non-compliance due to late filings of its Form 10-Q and Form 10-K.

What is Hallmark Financial's stock symbol?

Hallmark Financial's stock symbol is HALL.

What are the consequences of Hallmark Financial's non-compliance with Nasdaq?

If Hallmark Financial fails to regain compliance, its stock could be delisted from the Nasdaq Global Market.

When does Hallmark Financial need to submit its compliance plan?

Hallmark Financial needs to submit its compliance plan by May 28, 2020.

How does COVID-19 affect Hallmark Financial's filing timelines?

COVID-19 may create uncertainties that could delay Hallmark Financial's ability to file necessary documents.