Saflink Confident It Meets Requirements for Continued Listing on Nasdaq Capital Market
Company Believes It Will Receive Additional 180-day Cure Period
BELLEVUE, WA – (May 25, 2006) Saflink® Corporation- (NASDAQ:SFLK), a leading provider of solutions that verify identity, secure access and increase productivity, today announced that it is confident it meets the requirements to receive an additional 180 days to cure its minimum bid price deficiency after the first 180-day cure period expires in mid-June.
“We believe it is important that investors understand our position with respect to the ongoing listing of our common stock on the Nasdaq Capital Market. We know this is a critical issue for our investors and we want to make sure they not only understand our view on the topic but also want to provide them with as much information as we can concerning the matter,” said Jon Engman, Saflink CFO. Engman continued, “Based on inquiries we’ve received, we believe there is some confusion as to the status of our listing, and hope this will clarify the situation. Based on our review of the Nasdaq Capital Market requirements, we are confident that we meet the initial listing criteria, except for the bid price requirement. As a result, we believe that we will be afforded an additional 180-day period to comply with the bid price requirement. Ultimately, Nasdaq will determine whether we will be provided the additional 180-day period to comply with the bid price requirement, and we will communicate Nasdaq’s decision in a timely manner after we receive it,” added Mr. Engman.
As stated in a prior press release from December 22, 2005, Saflink received a deficiency letter on December 16, 2005, from The NASDAQ Stock Market indicating that Saflink was not in compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market, and that Saflink had 180 calendar days to regain compliance with the bid price requirement.
The letter also stated that Saflink can regain compliance with the bid price requirement if, at any time before June 14, 2006, the bid price of its common stock closes at or above $1.00 per share for a minimum of ten consecutive business days. If Saflink cannot demonstrate compliance by June 14, 2006, Nasdaq will determine whether it meets the Nasdaq Capital Market initial listing criteria set forth in Marketplace Rule 4310(c), except for the bid price requirement. If Saflink meets the initial listing criteria, it will be provided an additional 180 calendar-day period to comply with the bid price requirement. If Saflink is not eligible for this additional compliance period, it will be provided written notice that its securities will be delisted. At that time, Saflink would have the right to appeal Nasdaq’s determination to delist its securities to a listing qualifications panel, which would stay the effect of the delisting pending a hearing on the matter before the panel.
About Saflink
Saflink Corporation offers biometric security and smart card solutions that protect intellectual property, secure information assets and eliminate passwords. Saflink identity assurance management solutions allow administrators to verify identity and control access to computer networks, physical facilities and applications. Winner of seven awards in 2005, Saflink and its solutions have been recognized by organizations such as Frost & Sullivan and Software Magazine’s Software 500. For more information, please visit http://www.saflink.com or call 800-762-9595.
NOTE: “Saflink” is a registered trademark of Saflink Corporation. “NASDAQ” and “The NASDAQ Stock Market” are registered trademarks of The NASDAQ Stock Market, Inc.
This release contains information about management’s view of the company’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors. For example, Saflink may not be in compliance with the Nasdaq Capital Market initial listing criteria, except for the bid price requirement, when Nasdaq makes its determination whether to provide Saflink with an additional 180-day period to comply with the bid price requirement. In addition, even if Saflink is in compliance with such requirements, Nasdaq could determine that Saflink will not be provided an additional 180-day period. If Saflink is not provided an additional 180-day period to comply with such requirements, its common stock could be delisted from the Nasdaq Capital Market and it may trade on the over-the-counter market, which may be a less liquid market. Other factors include the risks and uncertainties associated with Saflink’s financial condition and those described in its Annual Report on Form 10-K, as well as other documents periodically filed with the Securities and Exchange Commission.
Saflink PRESS CONTACT:
Sterling Communications
Lindsay Stril
(253) 853-5030
lstril@sterlingpr.com
Saflink INVESTOR RELATIONS CONTACT:
Investor Awareness, Inc.
Tony Schor
(847) 945-2222
tony@investorawareness.com