GRAPEVINE, Texas, June 17, 2016 (GLOBE NEWSWIRE) — United Development Funding IV (“UDF IV” or the “Trust”) (NASDAQ:UDF) today announced that the Hearings Panel (the “Panel”) of The NASDAQ Stock Market LLC (“Nasdaq”) has granted the Trust’s request for a further stay of any delisting action pending the completion of the Nasdaq appeals process. The Trust is scheduled for a hearing before the Panel on July 7, 2016, at which time the Trust plans to present a definitive plan to regain compliance with the Nasdaq listing rule that requires issuers to be current in the filing of periodic financial reports with the Securities and Exchange Commission (“SEC”), and to request an extension of time to file its delayed reports.
The Trust’s common stock will remain listed on The Nasdaq Global Select Market pending the hearing and the expiration of any extension period granted by the Panel following the hearing. However, trading in UDF IV’s securities on Nasdaq has been halted since February 18, 2016, and there can be no assurance given that the Panel will grant any extension to file the Trust’s delayed reports or that there will be a resumption of regular trading of the Trust’s securities on any market.
As previously announced, on May 16, 2016, the Trust submitted its plan to regain compliance with the filing requirement for review by the Nasdaq Listing Qualifications Department (the “Staff”). In its May 26, 2016 response, the Staff indicated that because the Trust’s plan is predicated on the engagement of a new audit firm, the Staff believed the Trust’s plan was not sufficiently definitive and may not be completed within the discretionary period available to the Staff. As a result, the Staff determined to delist the Trust’s securities unless the Trust timely requested a hearing before the Panel. The Staff’s determination was based upon the Trust’s non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic reports with the SEC. On June 2, 2016, the Trust timely requested a hearing before the Panel, and on June 8, 2016, the Trust announced the appointment of EisnerAmper LLP as the Trust’s new independent registered public accounting firm. UDF IV is working diligently to complete and file all necessary periodic reports with the SEC as soon as practicable; however, there can be no assurance that the Panel will determine to continue the Trust’s listing, or that the Trust will be able to evidence compliance with the applicable listing criteria within the discretionary period that may be granted by the Panel.
About United Development Funding IV
United Development Funding IV is a public Maryland real estate investment trust formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. Additional information about UDF IV can be found on its website at www.udfiv.com. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.
Source: United Development Funding IV