XCEL BRANDS, INC. Receives NASDAQ notice regarding late Form 10-K filing

Rhea-AI Summary

Xcel Brands, Inc. (NASDAQ: XELB) announced on April 16, 2021, that it received a delinquency notification from Nasdaq for failing to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The notification does not immediately affect its stock listing. The company had to postpone its audit and financial results announcement. Nasdaq requires Xcel to submit a compliance plan within 60 days, which could grant an extension of up to 180 days to regain compliance. Xcel aims to file the 10-K report within the 60-day window.

Positive

• Xcel intends to file its Form 10-K within 60 days to regain compliance.
• Nasdaq's notification does not immediately affect trading or listing.

Negative

• Failure to timely file the Form 10-K indicates operational or auditing issues.
• Potential risk of non-compliance if the plan is not accepted.

NEW YORK, April 22, 2021 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), today announced that on April 16, 2021, it received a delinquency notification letter from the Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1), because it had not timely filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the "Form 10-K"). The Nasdaq notice has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Global Select Market.

As announced in a press release on April 15, 2021, the Company had not yet completed its audit for the year ended December 31, 2020 and postponed the release of its 2020 full year financial results and Form 10-K filing.

Nasdaq has informed the Company that it must submit a plan of compliance (the "Plan") within 60 calendar days, addressing how it intends to regain compliance with Nasdaq's listing rules and, if Nasdaq accepts the Plan, it may grant an extension of up to 180 calendar days from the Form 10-K original filing due date, or until October 12, 2021, to regain compliance. The Company intends to file its Form 10-K as soon as practicable and, in any event, within the 60-day period referenced above, and thereby regain compliance with the Nasdaq continued listing requirements and eliminate the need for the Company to submit a Plan.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a media and consumer products company engaged in the design, production, marketing, wholesale, and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. The company’s brands have generated in excess of $3BB US in retail sales through live streaming on TV. Xcel was founded by Robert W. D'Loren in 2011 with a vision to reimagine shopping, entertainment, and social media as one. Xcel owns the Isaac Mizrahi, Judith Ripka, Halston, LOGO Lori Goldstein and C. Wonder brands, and it owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through interactive television, brick-and-mortar retail, e-commerce and peer to peer channels. Headquartered in New York City, Xcel Brands is led by an executive team with significant livestream production, merchandising, design, production, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. With an experienced team of professionals focused on design, production, and digital marketing, Xcel maintains control of product quality and promotion across all of its product categories and distribution channels. Xcel differentiates by design. www.xcelbrands.com

For further information please contact:

Andrew Berger
SM Berger & Company, Inc.
216-464-6400
andrew@smberger.com

FAQ

What happened to Xcel Brands on April 16, 2021?

On April 16, 2021, Xcel Brands received a delinquency notification from Nasdaq for not filing its Annual Report on Form 10-K on time.

What are the consequences of Xcel Brands not filing its Form 10-K?

While there are no immediate consequences to trading or listing, Xcel must submit a compliance plan to Nasdaq within 60 days.

How much time does Xcel Brands have to regain compliance with Nasdaq?

Xcel Brands has 60 days to submit a compliance plan, potentially extending up to 180 days to regain compliance with Nasdaq's listing rules.

What is the impact of the Form 10-K delay on Xcel Brands' stock?

Currently, there is no immediate impact, but the delay indicates operational challenges that could lead to future risks.