Del Taco Restaurants, Inc. (NASDAQ:TACO) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As previously disclosed, on August 18, 2019 Patrick D. Walsh resigned from the Board of Directors of Del Taco Restaurants, Inc. (the “Company”). The Company notified the NASDAQ Stock Market (“NASDAQ”) that, as a result of Mr. Walsh’s resignation, the Company was no longer in compliance with the requirements of NASDAQ Listing Rule 5605 to have a Board comprised of a majority of independent directors and an Audit Committee comprised of at least three members who satisfy certain criteria. On August 21, 2019, in response to the Company’s notice, NASDAQ issued a letter to the Company acknowledging the Company’s noncompliance and confirming that, consistent with NASDAQ Listing Rule 5605(b)(1)(A)>and 5605(c)(4), the Company can rely on a cure period allowing the Company to regain compliance by the earlier of the Company’s next annual meeting of stockholders or August 18, 2020; or, if the Company’s next annual meeting of stockholders is held before February 14, 2020, by February 14, 2020.
In light of the departure of Mr. Walsh, the Board of Directors of the Company plans to examine whether other non-employee directors qualify as “independent” directors according to the rules and regulations of the SEC and the NASDAQ listing standards. In particular, the Board plans to review all relevant identified transactions or relationships between Ari B. Levy and Lawrence F. Levy and the Company, the Company’s senior management and the Company’s independent registered public accounting firm to determine whether either or both are free of any relationship that would impair his individual exercise of independent>judgment with regard to the Company. Ari B. Levy and Lawrence F. Levy were initially precluded from being deemed “independent” to NASDAQ Listing Rule 5605(a)(2)(A) due to their employment relationships with our predecessor, Levy Acquisition Corp., which employment relationships terminated more than 3 years ago on June 30, 2015. These prior employment relationships no longer preclude a determination of independence.
About Del Taco Restaurants, Inc. (NASDAQ:TACO)
Del Taco Restaurants, Inc., formerly Levy Acquisition Corporation, is an operator and franchisor of restaurants featuring fresh and fast made-to-order cuisine, including both Mexican inspired and American classic dishes. The Company operates Del Taco restaurants in approximately 20 states, including over one franchised restaurant in Guam. The Company has approximately 300 Company-operated and over 250 franchised restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes. Additionally, the Company’s menu features both premium items such as Epic Burritos, Handcrafted Ensaladas and Fresca Bowls, as well as lower priced items on its Buck & Under Menu. Del Taco restaurant is a free-standing building with drive-in service that ranges in size from 2,000 to 2,600 square feet.
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