Bluefly Receives Nasdaq Letter.Business Editors/High Tech Writers NEW YORK--(BUSINESS WIRE)--Jan. 16, 2001 Bluefly, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCap: BFLY BFLY Bluefly Inc. (stock symbol) ) announced today that it had received a Nasdaq Staff Determination letter advising it of the staff's view that it is not in compliance with the net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". requirement for continued listing. As disclosed in the company's SEC filings, the company had received an earlier notification from Nasdaq in June 2000 requesting it to address this deficiency and, accordingly, structured its proposed equity investment by affiliates of Soros Private Equity Partners in order to allow Bluefly to re-attain compliance with the net tangible assets requirement. Definitive agreements relating to the Soros equity investment were signed in November 2000, and the transaction is subject to shareholder approval at the company's annual shareholders meeting, which is scheduled for February 1, 2001. The consummation of the additional Soros equity investment would allow the company to re-attain compliance with the net tangible assets requirement. Therefore, the company has requested a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination, which has been scheduled for February 22, 2001. However, if the company does not prevail at the hearing, its securities will be subject to delisting from The Nasdaq SmallCap Market. There can be no assurance that the company will maintain its burden of demonstrating to the Panel that it can attain and sustain compliance with NASDAQ's net tangible assets requirement, that the additional Soros equity investment will be consummated, or that the company will be able to sustain compliance with this requirement or NASDAQ's other listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. , including its minimum requirements for bid price and market value of public float. Bluefly is headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in the heart of the fashion district. Distinguishing itself with discounts of up to 75%, products from more than 350 designers and a 90-day money back guarantee, Bluefly.com aims to be the world's first full service outlet store for designer fashions. Its innovative MyCatalog feature is designed to eliminate the "hit-or-miss" aspect of off-price shopping by allowing shoppers to see only those products that are available for sale and match their interests. The online merchant has established strategic alliances with many of the most visited Web Sites and portals including AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Excite, MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). , Netcenter, Women.com and Yahoo!. For more information, visit www.bluefly.com. This press release may include statements that constitute "forward-looking" statements, usually containing the words "believe", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission, including Forms 8-A, 8-K, 10-Q, and 10-K. These risks and uncertainties include, but are not limited to: the potential failure to obtain shareholder approval of the Soros equity investment. |
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