8-KSecurities & Listing

Monster Beverage Corp 8-K Report, Listing Notice (May 21, 2007)

Filed May 21, 2007For Securities:MNST

Summary

This 8-K filing from Hansen Natural Corporation (now Monster Beverage Corp) on May 21, 2007, addresses a critical issue for investors: the company's compliance with Nasdaq listing requirements. The company received an additional notice from Nasdaq indicating potential delisting due to its failure to file its Form 10-Q for the quarter ended March 31, 2007. This delinquency, following previous filing delays related to a special committee investigation, puts the company's listing status in jeopardy. Despite the ongoing challenges, Hansen Natural Corporation is actively working to rectify the situation. The company had previously filed its Form 10-Q for the quarter ended September 30, 2006, which resulted in an extension for filing its 2006 10-K until June 14, 2007. Management expresses confidence in meeting this deadline and aims to file the first quarter 10-Q thereafter, thereby becoming current with its reporting obligations and mitigating the risk of delisting.

Key Highlights

  • 1Hansen Natural Corporation received an additional Nasdaq Staff Determination letter citing non-compliance with listing Rule 4310(c)(14) due to the unfiled Form 10-Q for the quarter ended March 31, 2007.
  • 2This filing deficiency serves as an additional basis for the delisting of the company's securities from Nasdaq.
  • 3The company's previous filing delays were attributed to an investigation by a special committee, which has now been completed.
  • 4Following the filing of the September 30, 2006 10-Q, Nasdaq extended the deadline for filing the 2006 10-K to June 14, 2007.
  • 5Hansen Natural Corporation plans to present its views to Nasdaq regarding the deficiency by May 23, 2007.
  • 6The company anticipates filing its 2006 10-K by the June 14, 2007 deadline and expects to file the first quarter 10-Q as soon as practicable to regain current filing status.
  • 7The company acknowledges the uncertainty of the outcome with Nasdaq and the completion of filings, despite their proactive plans.

Frequently Asked Questions

This 8-K filing is primarily to inform investors that Hansen Natural Corporation has received an additional notice from Nasdaq indicating that it is not in compliance with listing requirements due to its failure to file the Form 10-Q for the quarter ended March 31, 2007. This could lead to the delisting of the company's securities.

The company plans to formally present its case to Nasdaq by May 23, 2007. They also express confidence in meeting the extended deadline of June 14, 2007, to file their 2006 10-K and intend to file the delinquent first quarter 10-Q as soon as possible thereafter to become current with their reporting obligations.

The investigation by the Special Committee that caused previous filing delays has been completed. The company has filed its Form 10-Q for the quarter ended September 30, 2006, which allowed for an extension on the 2006 10-K filing. However, the delinquency with the first quarter 2007 10-Q is a new, additional basis for delisting.

Delisting from Nasdaq would mean the company's stock would no longer trade on a major exchange, potentially reducing liquidity and making it harder for investors to buy or sell shares. It could also negatively impact the stock's perception and valuation, although the company is working to avoid this outcome.