SEATTLE, WA -- (Marketwire) -- 07/01/11 -- HQ Sustainable, a leader in the production and marketing of health products derived from marine based raw materials as well as Tilapia resulting from vertically integrated operations, announced today it received a notice from the NYSE Amex LLC (the 'Exchange') stating that the Exchange staff has determined that the Company's previously submitted plan of compliance, as amended and supplemented, did not make a reasonable demonstration of the Company's ability to regain compliance with Sections 134 and 1101 of the Exchange Company Guide. The Exchange noted that, in addition to the previous continued listing deficiencies (as recited below), the Company was being subject to delisting pursuant to Section 1003(f)(iii) of the Exchange Company Guide in that, in the opinion of the Exchange staff, the Company or its management has engaged in operations, which, in the opinion of the Exchange staff, are contrary to the public interest. In addition, the Exchange also noted that the Company was also subject to delisting pursuant to Section 132(e) of the Exchange Company Guide in that, in the opinion of the Exchange staff, the Company made '...a material representation to the Exchange' which relates to the circumstances of the purported independent review by the Audit Committee of the Board in May 2011. Finally, the Exchange noticed the Company with an additional continued listing deficiency under Section 803B(4) of the Exchange Company Guide which requires that the Audit Committee of each issuer must have the specific audit committee responsibilities, authority and procedures necessary to comply with Rule 10A-3(b)(4) and (5) under the Exchange Act, concerning responsibilities relating to authority to engage advisors and funding for compensation to be paid to such advisors as determined by the Audit Committee. Accordingly, the Exchange notified the Company that, based on the previously noticed and foregoing deficiencies, the Company's common stock was subject to delisting from the Exchange (the 'Staff Determination'). The Company has determined not to appeal this Staff Determination and, consequently, notified the Exchange of its intent. As previously reported, on April 1, 2011, the Company received a notice from the Exchange notifying the Company that was not in compliance with continued listing standards set forth under Sections 134 and 1101 of the Exchange Company Guide since the Company was yet to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2010. On April 11, 2011, the Company received another notice from the Exchange notifying the Company that, following resignation of its independent nonexecutive director and the Chairman of the Audit Committee effective April 6, 2011, the Company was not in compliance with continued listing standards set forth under Sections 802(a) and 803(B)(2)(a) of the Exchange Company Guide. Finally, on May 27, 2011, the Company received an additional deficiency letter from the Exchange due to the Company's inability to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2011. The trading in the Company's securities remains halted.
This press release supplements and updates the Company's previous press release relating to the same matters distributed on June 30, 2011.
About HQ Sustainable Maritime Industries, Inc.
HQ Sustainable Maritime Industries, Inc. ('HQS') is a leader in the production and marketing of health products derived from marine based raw materials as well as Tilapia resulting from vertically integrated operations. HQS practices cooperative farming of sustainable aquaculture, produces all-natural enriched feeds, Tilapia value added products and health products. The Company markets its nutraceutical and health products.
The Company produces and sells certified, value added Seafood products, including Certified 'Gluten Free' 'Lillian's Healthy Gourmet' products in the United States through its Seattle based affiliate.
The Company's subsidiaries hold GMP certification from China. HACCP certification from the U.S. FDA and the EU Code assignment of quality, permitting its products to be sold in international markets. It has also achieved the ISO 9001 quality management system standards certification and the ISO 22000 certification for quality in food safety. HQS tilapia farming, processing and feed manufacturing standards met Best Aquaculture Practices, the new Global G.A.P., the Global Partnership for Good Agriculture Practice, standards for Tilapia. The Chinese government gave organic certification to the Company's tilapia processing, production, labeling, marketing and management system. In addition to headquarters in Seattle, HQ has operational and Sales and Marketing offices in Seattle, Newport Beach, Beijing, Shanghai, Hangzhou, Nanning, Changsha, Guangzhou, Shenzhen, Sanya, Zhuhai, Hong Kong, Wenchang and Haikou.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this press release that are not historical facts are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as 'anticipate,' 'believe,' 'expect,' 'future,' 'may,' 'will,' 'would,' 'should,' 'plan,' 'projected,' 'intend,' and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of HQ Sustainable Maritime Industries, Inc. to be materially different from those expressed or implied by such forward- looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; obtain relief sought from the NYSE Amex and its ability to execute upon such relief in a timely manner to the NYSE Amex's satisfaction, build the management and human resources and infrastructure necessary to support the growth of its business; competitive factors and developments beyond the Company's control; and other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual events to differ from the forward-looking statements. HQS operates in a highly competitive and rapidly changing business and regulatory environment, thus new or unforeseen risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Except as is expressly required by the federal securities laws, HQS undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.