Brazil’s Tele Norte Celular, the holding company of the providers of wireless telecommunications services in the Brazilian states of Amapá, Amazonas, Maranhão, Pará and Roraima, has received a warning from the New York Stock Exchange (NYSE).
Tele Norte has been notified that the company currently falls below the new continued listing standard, requiring total stockholders’ equity of not less than US$ 75 million or total market capitalization of not less than US$ 75 million over a 30 trading-day period.
The NYSE has recently restructured and increased certain of the continued listing criteria. Previously, the NYSE continued listing standards required total stockholders’ equity of not less than US$ 50 million or total market capitalization of not less than US$ 50 million over a 30 trading-day period.
Both criteria have been increased to US$ 75 million. Tele Norte Celular’s stockholders’ equity under U.S. GAAP was US$ 56 million at December 31, 2004, and its market capitalization was US$ 65 million as of July 29, 2005.
As required by the NYSE, Tele Norte Celular will submit a detailed plan to the Listings and Compliance Committee of the NYSE, demonstrating how the Company plans to be in compliance with the Continued Listing Standard on or before the 18 months of receipt of the non-compliance notice, the deadline set by the NYSE.
If the Committee accepts the plan, the Company will be monitored quarterly for compliance with the plan. Should the Committee not accept the plan, Tele Norte Celular will be subject to trading suspension and delisting procedures.
Based on internal estimates and execution of planned corporate transactions, Tele Norte Celular believes it will satisfy the Continued Listing Standard by the NYSE deadline.
In order to enhance information to investors, the NYSE will append a below criteria (BC) indicator to the ticker symbol of the Company. The indicator will be removed if the Company is deemed compliant with NYSE’s continued listing requirements. The dissemination of the indicator will provide a transparent signal regarding the Company’s listing status.