MONTREAL, Aug. 13, 2020 /CNW Telbec/ - Birks Group Inc.
(the "Company") (NYSE American LLC: BGI), announced that it has
received notice from the NYSE American LLC ("NYSE American") on
August 7, 2020 that the Company was
not in compliance with the continued listing standards set forth in
Section 1003(a)(ii) of the NYSE American Company Guide (the
"Company Guide"). That section applies if a listed company has
stockholders' equity of less than U.S. $4.0
million and has reported losses from continuing operations
and/or net losses in three of its four most recent fiscal years.
The Company reported stockholders' equity of U.S $2.5 million (CAD $3.4
million) as of its fiscal year ended March 28, 2020, and has reported losses from
continuing operations in each of its last four most recent fiscal
years including the fiscal year ended March
28, 2020, despite reporting net income in two of its last
four fiscal years. As a result, the Company has become subject to
the procedures and requirements of Section 1009 of the Company
Guide and must submit a plan to NYSE American by September 6, 2020 addressing how the Company
intends to regain compliance with Section 1003(a)(ii) by
February 6, 2022.
The Company intends to timely deliver a plan of compliance to
NYSE American. If the Company does not submit a plan, or if
the plan the Company submits is not accepted by NYSE American, the
Company will be subject to delisting proceedings as specified in
the Company Guide. In addition, if the plan is accepted by
NYSE American, but the Company is not in compliance with the
continued listing standards by February 6,
2022, or if the Company does not make progress consistent
with the plan, the Company will be subject to delisting
proceedings. If the plan is accepted, the Company will also
be subject to periodic NYSE American reviews, including quarterly
monitoring for compliance with the plan.
Receipt of the notice does not affect the Company's business,
operations, financial or liquidity condition, or reporting
requirements with the Securities and Exchange Commission. During
this time, the Company's Class A voting shares will continue to be
listed and trade on the symbol "BGI."
About Birks Group Inc.
Birks Group is a leading designer of fine jewellery, timepieces
and gifts and operator of luxury jewellery stores in Canada. The Company operates 27 stores under
the Maison Birks brand in most major metropolitan markets in
Canada, one retail location in
Calgary under the Brinkhaus brand
and two retail locations in Vancouver under the Graff and Patek Philippe
brands. Birks Collections are available at Mappin & Webb and
Goldsmiths in the United Kingdom
in addition to several jewellery retailers across North America. Birks was founded in 1879 and
has become Canada's premier
retailer and designer of fine jewellery, timepieces, and gifts.
Additional information can be found on the Company's web site,
www.birks.com
Forward Looking Statements
This press release contains certain "forward-looking"
statements. Given such statements include various risks and
uncertainties, actual results might differ materially from those
projected in the forward-looking statements and no assurance can be
given that we will meet the results projected in the forward
looking statements. These risks and uncertainties include, but are
not limited to the following: (i) the magnitude and length of
economic disruption as a result of the worldwide COVID-19 outbreak,
including its impact on macroeconomic conditions, generally, as
well as its impact on the results of operations and financial
condition of the Company and the trading price of its shares,
(ii) economic, political and market conditions, including the
economies of Canada and the U.S.,
which could adversely affect the Company's business, operating
results or financial condition, including its revenue and
profitability, through the impact of changes in the real estate
markets, changes in the equity markets and decreases in consumer
confidence and the related changes in consumer spending patterns,
the impact on store traffic, tourism and sales; (iii) the
impact of fluctuations in foreign exchange rates, increases in
commodity prices and borrowing costs and their related impact on
the Company's costs and expenses; (iv) the Company's ability
to maintain and obtain sufficient sources of liquidity to fund its
operations, to achieve planned sales, gross margin and net income,
to keep costs low, to implement its business strategy, maintain
relationships with its primary vendors, to mitigate fluctuations in
the availability and prices of the Company's merchandise, to
compete with other jewelers, to succeed in its marketing
initiatives, and to have a successful customer service program; (v)
the Company's ability to execute its strategic vision; (vi)
acceptance of the Company's plan by the NYSE American, and (vii)
the Company's ability to achieve compliance with the NYSE America's
continued listing standards within the required time frame.
Information concerning factors that could cause actual results to
differ materially are set forth under the captions "Risk Factors"
and "Operating and Financial Review and Prospects" and elsewhere in
the Company's Annual Report on Form 20-F filed with the
Securities and Exchange Commission on July
8, 2020 and subsequent filings with the Securities and
Exchange Commission. The Company undertakes no obligation to update
or release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this statement or
to reflect the occurrence of unanticipated events, except as
required by law.
SOURCE Birks Group Inc.