Company Will File Application to Transfer to The Nasdaq Capital Market
SAN DIEGO, Feb. 19 /PRNewswire-FirstCall/ -- Overland Storage, Inc.
(Nasdaq: OVRL) announced today that it received a Nasdaq Staff Deficiency
Letter (the "Nasdaq Letter") indicating that, based on the Company's
shareholders' equity as reported in its Quarterly Report on Form 10-Q for the
period ended December 28, 2008, the Company does not comply with the minimum
shareholders' equity requirement of $10 million for continued listing on The
Nasdaq Global Market as set forth in Nasdaq Marketplace Rule 4450(a)(3). The
Nasdaq Letter provides the Company 15 calendar days from the date of the
letter to submit a plan to regain compliance, or, alternatively, to elect to
transfer listing of its common stock to The Nasdaq Capital Market provided the
Company meets the criteria for continued listing on The Nasdaq Capital Market
other than the minimum bid price requirement.
After considering the alternatives, the Board of Directors has determined
to request transfer to The Nasdaq Capital Market, and the Company intends to
file a transfer application no later than February 27, 2009. The Company
believes, based on its December 28, 2008 balance sheet and other quantitative
data available at this time, that it satisfies the applicable quantitative
continuing listing requirements for inclusion in The Nasdaq Capital Market.
If Nasdaq approves the transfer application, the transfer is expected to occur
nine calendar days following Nasdaq's receipt of the transfer application.
However, there can be no assurance that the Company's transfer application
will be approved. If it is not approved, the Company would consider
alternatives at that time.
The Nasdaq Capital Market is one of the three tiers for Nasdaq-listed
securities and includes over 400 companies. Companies listed on The Nasdaq
Capital Market must adhere to the same corporate governance standards
applicable to companies listed on The Nasdaq Global Market. The Nasdaq
Capital Market operates in substantially the same manner as The Nasdaq Global
Market and following transfer the Company's shares will continue to trade
under the symbol "OVRL".
About Overland Storage
Overland Storage provides affordable end-to-end data protection solutions
that are engineered to store smarter, protect faster and extend anywhere --
across networked storage, media types and multi-site environments. Overland
Storage products include award-winning NEO SERIES(R) and ARCvault(R) tape
libraries, REO SERIES(R) disk-based backup and recovery appliances with VTL
capabilities, Snap Server(R) NAS appliances, and ULTAMUS(R) RAID
high-performance, high-density storage. Overland sells its products through
leading OEMs, commercial distributors, storage integrators and value-added
resellers. For more information, visit Overland's web site at
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
This press release includes forward-looking statements that reflect
management's current views of future events including statements regarding the
Company's ability to comply with the requirements under the Nasdaq Marketplace
Rules. Actual results may differ materially from the forward-looking
statements due to a number of important factors, including, but not limited
to, Nasdaq's discretionary authority to approve or deny a transfer application
to The Nasdaq Capital Market even if the Company satisfies the quantitative
listing requirements and risks relating to the Company's ability to maintain
compliance with such market's continued listing requirements. Other risks
affecting the Company are detailed from time to time in the Company's periodic
reports filed with the SEC. These forward-looking statements speak only as of
the date of this release and the Company undertakes no obligation to publicly
update any forward-looking statements to reflect new information, events or
circumstances after the date of this release.
SOURCE Overland Storage, Inc.
CONTACT: Kurt L. Kalbfleisch, VP Finance and CFO of Overland Storage,
Inc., +1-858-571-5555, email@example.com; or Sue Hetzel of
HetzelMeade Communications, +1-760-434-9927, firstname.lastname@example.org, for Overland
Web Site: http://www.overlandstorage.com