ELMA, N.Y., Oct. 27, 2016 /PRNewswire/ -- Servotronics, Inc. (NYSE MKT - SVT), a designer and manufacturer of servo-control components and other advanced technology products, announced today it has received a non-compliance notice from the NYSE MKT (the "Exchange"). The Company received the notice after the Company notified the Exchange that its Board of Directors (the "Board") determined that Rigel D. Pirrone no longer qualifies as an "independent director" under Section 803(A)(2) of the NYSE MKT Company Guide due to the increased management responsibilities expected to be undertaken by Mr. Pirrone's brother, Deneb Pirrone, who is employed by the Company as Senior Director of Corporate Development. As a result, less than fifty percent of the directors on the Board are independent as required under Section 801(h) of the NYSE MKT Company Guide applicable to smaller reporting companies.
The Company will have until the earlier of its next annual meeting of shareholders or October 19, 2017 to regain compliance (such earlier date, the "Compliance Date"). While not expected, if the Company were to hold its 2017 annual meeting of shareholders early (on or before April 8, 2017), then the Compliance Date would instead be April 8, 2017.
The Exchange's notice has no immediate effect on the listing of the Company's common stock on the Exchange. The Company expects to regain compliance with the continued listing standards no later than the Compliance Date.
Servotronics, Inc. is composed of two groups – the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). The ATG primarily designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, manufacturing equipment, etc.). The CPG designs and manufactures cutlery, bayonets, machetes and combat, survival, sporting, agricultural, and pocket knives for both commercial and government applications.
Certain paragraphs of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual events to differ materially from those contained in any forward-looking statement. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE MKT
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SOURCE Servotronics, Inc.