Kmart Notified by NYSE That its Stock Could be Delisted
Kmart Corporation (NYSE: KM) announced today that it has been notified by the New York Stock Exchange (NYSE) that its common stock could be subject to trading suspension and delisting within the next six months. Kmart received this notification because the average share price of its common stock for the previous 30 days has been below $1.00. The NYSE's criteria for continued listing require that a Company's common stock trade at a minimum average share price of $1.00 over a 30-day period.
Under NYSE guidelines, Kmart must return to compliance with the NYSE's criteria for continued listing within six months following receipt of the NYSE's notification. In the event that the Company fails to return to compliance in a timely manner, or the NYSE, in its discretion, otherwise determines to institute delisting proceedings, the common stock could be subject to trading suspension and delisting. If Kmart's shares cease to be traded on the NYSE, Kmart believes that an alternative trading venue will be available.
Kmart Corporation is a $36 billion company that serves America with more than 1,800 Kmart and Kmart SuperCenter retail outlets and through its e-commerce shopping site, http://www.kmart.com/ .
Cautionary Statement Regarding Forward-Looking Information
Statements made by Kmart which address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties, including, but not limited to, Kmart's having filed for bankruptcy and factors relating to Kmart's operations and the business environment in which Kmart operates, which may cause the actual results of Kmart to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those set forth in Kmart's Annual Report on Form 10-K for the fiscal year ended January 30, 2002 or in other filings made, from time to time, by Kmart with the Securities and Exchange Commission. The forward- looking statements speak only as of the date when made and Kmart does not undertake to update such statements.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of our various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Kmart common stock receiving no value for their interests. Because of such possibilities, the value of the common stock is highly speculative. Accordingly, we urge that appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
SOURCE: Kmart Corporation
CONTACT: Kmart Media Relations, +1-248-463-1021
Web site: http://www.kmart.com/