MUNDELEIN, Ill., May 30 /PRNewswire-FirstCall/ -- Z Trim Holdings, Inc.
(Amex: ZTM) announced today it received notification on May 28, 2008 that the
American Stock Exchange ('Amex') notified Z Trim Holdings, Inc. (the
'Company') that the staff of the Amex has determined that the Company is not
in compliance with certain of Amex' continued listing standards.
Specifically, based upon a review of the Company's Form 10-Q for the period
ended March 31, 2008, the Amex Staff determined that the Company reported
$5,970,000 of shareholders' equity, which is less than the $6,000,000
threshold for shareholders' equity after losses from continuing operations and
net losses in its five most recent fiscal years as required by Section
1003(a)(iii) of the Company Guide. The Amex Staff further determined that the
Company has sustained losses which are so substantial in relation to its
overall operations or its existing financial resources, or its financial
condition has become so impaired that it appears questionable, in the opinion
of the Amex, as to whether the Company will be able to continue operations
and/or meet its obligations as they mature, in violation of Section
1003(a)(iv) of the Company Guide. The letter constitutes a 'Deficiency
Letter' pursuant to Section 1009 of the Amex Company Guide (the 'Guide'). Amex
has provided the Company the opportunity to submit a compliance plan to
resolve the deficiencies. Amex has not initiated a de-listing procedure or
suspended trading in the Company's common stock.
'Certainly, we are disappointed to have to emphasize, again, the poor
historical performance of our Company,' stated President, Steve Cohen.
'However, as this deficiency relates to our past financial performance in
combination with our previously reported current financial condition rather
than to any deficiencies in our corporate governance and internal controls,
this is old news and our investors and the investment community have
previously been made aware of our financial health. We remain confident in
our ability to both capitalize our revitalized business model, as well as
capitalize on our recent successes in the marketplace. We welcome the
additional oversight that Amex provides and will work diligently to regain
compliance with Amex listings standards. By building our business, we will
simultaneously address Amex's concerns while building shareholder value.'
The Company is in the process of reviewing the Amex staff's findings. In
response to the Deficiency Letter, and as specifically directed by the
Deficiency Letter, the Company will submit a Plan, by June 30, 2008, advising
the Amex of actions it has taken and will take that will bring it back into
compliance with Section 1003(a)(iii) by November 30, 2009 and 1003(a)(iv) by
November 28, 2008. Amex' Listing Qualifications Department management will
evaluate the Company's Plan, determine whether the Company has made a
reasonable demonstration of its ability to regain compliance within the
allotted time and if the Company has so demonstrated, will accept the Plan.
If the Plan is accepted, the Company will be able to continue its listing
during the Plan period, subject to periodic review of progress. If the Plan
is not accepted, however, or if the Company does not make progress consistent
with the plan, or if the Company is not in compliance upon closure of the Plan
period, the Amex will initiate delisting proceedings.
ABOUT Z TRIM(R)
Z Trim, http://www.ztrim.com, is a natural, functional food ingredient and
emulsifier made from the hulls of corn and oat. Because Z Trim is non-caloric,
replacement of added fats with Z Trim can achieve up to 80% calorie reduction
in many foods without negatively affecting taste or texture, and can
substantially reduce harmful trans and saturated fats found in many foods. Z
Trim is a versatile product that can serve as a fat replacement or emulsifier
with texturization, binding, shaping, suspension, water control and pH balance
attributes. Z Trim has wide application in dairy products, dressings, dips,
sauces, baked goods, processed meats, snack foods, cookies, pies, cakes,
icings, brownies, bars, ice cream, milk shakes and many other foods.
Forward-Looking Statements and Risk Factors
Certain statements in this press release are '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. These statements involve a number
of risks, uncertainties and other factors that could cause actual results,
performance or achievements of Z Trim Holdings to be materially different from
any future results, performance or achievements expressed or implied by these
forward.looking statements. Other factors, which could materially affect such
forward.looking statements, can be found in our filings with the Securities
and Exchange Commission at http://www.sec.gov, including risk factors relating
to our history of operating losses, lack thus far of significant market
acceptance of our products, the fact that we may dilute existing shareholders
through additional stock issuances, and our reliance on our intellectual
property. Investors, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward.looking statements
and are cautioned not to place undue reliance on such forward.looking
statements. The forward.looking statements made herein are only made as of the
date of this press release and we undertake no obligation to publicly update
such forward.looking statements to reflect subsequent events or circumstances.
Contact: Angela Strickland
Voice: 847-549-6002
Email: angela.strickland@ztrim.com
SOURCE Z Trim Holdings, Inc.