SPAR Group, Inc. (NASDAQ:SGRP) 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.

Resignation of Audit Committee Members from Board and its Committees

On June 9, 2021, in a letter to the Corporation, all three members of SGRP\’s Audit Committee, namely Mr. Arthur H. Baer, Mr. Igor Novgorodtsev, and Mr. Jeffrey A. Mayer (each a \”Resigning Independent Director\”), resigned from the Corporation\’s Board of Directors (the \”Board\”) and all of its committees, effective immediately (the \”Resignations\”). Management informed Nasdaq of the receipt of the Resignations on June 11, 2021. Please see SGRP\’s Current Report on Form 8-K reporting the Resignation as filed with the SEC on June 14, 2021 (the \”Resignation Report\”), and the Resignation Letter that was attached to the Resignation Report (the \”Resignation Letter\”).

Nasdaq Notice of Failure to Comply with its Board Independence and Audit Committee Composition Rules

As a result of the Resignations, SGRP received a notification letter from Nasdaq dated June 15, 2021 (the \”Nasdaq Deficiency Letter\”), stating that SGRP no longer complies with Nasdaq\’s majority independent director and audit committee requirements as set forth in Nasdaq Listing Rule 5605 (“Nasdaq Rules”).

In the Nasdaq Deficiency Letter, Nasdaq noted that a listed company normally has 45 calendar days to submit a detailed plan to regain compliance for non-compliance with the Nasdaq Rules. However, Nasdaq\’s Staff determined to give a shortened deadline for SGRP to submit its plan to regain compliance, until June 29, 2021, to its discretionary authority set forth in Listing Rule 5101.3. Please see Item 1A — Risk Factors — Risks of a Nasdaq Delisting and Penny Stock Trading in the Amended 2020 Annual Report.

If SGRP\’s plan to regain compliance with the Nasdaq Rules is accepted, Nasdaq\’s Staff can grant an extension of up to 180 calendar days from the date of the Nasdaq Deficiency Letter to permit and evidence such compliance.

The text of the Nasdaq Deficiency Letter is attached to and filed with this Current Report as Exhibit 17.1 hereto and is hereby incorporated by reference into this Current Report and made a part hereof. The descriptions of the Nasdaq Deficiency Letter in this Current Report are subject to and are qualified in their entirety by the full text of the Nasdaq Deficiency Letter.

For background on the ongoing disputes between the Company and its majority stockholders leading to the three independent director resignations, please see the Resignation Report.

Forward Looking Statements

This Current Report on Form 8-K (this \”Current Report\”) contains \”forward-looking statements\” within the \”safe harbor\” provisions of the Private Securities Litigation Reform Act of 1995, made by, or respecting, the Corporation and its subsidiaries (the \”Company\”), and this Current Report has been filed by the Corporation with the SEC. \”Forward-looking statements\” are defined in Section 27A of the Securities Act of 1933, as amended (the \”Securities Act\”), and Section 21E of the Securities Exchange Act of 1934, as amended (the \”Exchange Act\”), and other applicable federal and state securities laws, rules and regulations, as amended (together with the Securities Act and the Exchange Act, \”Securities Laws\”).

All statements (other than those that are purely historical) are forward-looking statements. Words such as \”may,\” \”will,\” \”expect,\” \”intend,\” \”believe,\” \”estimate,\” \”anticipate,\” \”continue,\” \”plan,\” \”project,\” or the negative of these terms or other similar expressions also identify forward-looking statements. Forward-looking statements made by the Corporation in this Current Report may include (without limitation) statements regarding: risks, uncertainties, cautions, circumstances and other factors (\”Risks\”); and plans, intentions, expectations, guidance, the novel coronavirus and COVID-19 pandemic on the Company\’s business, the Corporation\’s compliance with applicable Nasdaq director independence rules, the Company\’s cash flow or financial condition, the Company\’s cash flow, or the pursuit or achievement of the Company\’s corporate objectives.

You should carefully review and consider the Company\’s forward-looking statements (including all risk factors and other cautions and uncertainties) and other information made, contained or noted in or incorporated by reference into this Current Report, but you should not place undue reliance on any of them. The results, actions, levels of activity, performance, achievements or condition of the Company (including its affiliates, assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, performance, prospects, sales, strategies, taxation or other achievement, results, Risks, trends or condition) and other events and circumstances planned, intended, anticipated, estimated or otherwise expected by the Company (collectively, \”Expectations\”), and our forward-looking statements (including all Risks) and other information reflect the Company\’s current views about future events and circumstances. Although the Company believes those Expectations and views are reasonable, the results, actions, levels of activity, performance, achievements or condition of the Company or other events and circumstances may differ materially from our Expectations and views, and they cannot be assured or guaranteed by the Company, since they are subject to Risks and other assumptions, changes in circumstances and unpredictable events (many of which are beyond the Company\’s control). In addition, new Risks arise from time to time, and it is impossible for the Company to predict these matters or how they may arise or affect the Company. Accordingly, the Company cannot assure you that its Expectations will be achieved in whole or in part, that it has identified all potential Risks, or that it can successfully avoid or mitigate such Risks in whole or in part, any of which could be significant and materially adverse to the Company and the value of your investment in the Company\’s common stock.

These forward-looking statements reflect the Company\’s Expectations, views, Risks and assumptions only as of the date of this Current Report, and the Company does not intend, assume any obligation, or promise to publicly update or revise any forward-looking statements (including any Risks or Expectations) or other information (in whole or in part), whether as a result of new information, new or worsening Risks or uncertainties, changed circumstances, future events, recognition, or otherwise.

Item 9.01.         Financial Statements and Exhibits.

SPAR Group, Inc. Exhibit
SEC.gov | Request Rate Threshold Exceeded html {height: 100%} body {height: 100%; margin:0; padding:0;} #header {background-color:#003968; color:#fff; padding:15px 20px 10px 20px;font-family:Arial,…
To view the full exhibit click here

About SPAR Group, Inc. (NASDAQ:SGRP)

Spar Group, Inc. is an international merchandising and marketing services company. The Company provides its merchandising and other marketing services to manufacturers, distributors and retailers across the world, primarily in mass merchandisers, office supply, grocery, drug store, independent, convenience, toy, home improvement and electronics stores. It operates through two segments: the Domestic Division and the International Division. The Domestic Division provides merchandising and marketing services, furniture and other product assembly services, audit services, and technology services to manufacturers, distributors and retailers in the United States. Those services are primarily performed in mass merchandisers, office supply, grocery, drug store, dollar and electronics stores. The International Division provides merchandising, marketing services and in-store event staffing through subsidiaries in Japan, Canada, South Africa, India, China, Australia, Mexico and Turkey.