LKI Gets Delisting Warning After it Fails to Report Annual Results

Lazare Kaplan International Inc. (LKI) received a Deficiency Letter from the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) relating to the company's failure to file its annual report for the fiscal year ended May 31.

LKI’s failure to file the report is a material violation of its listing agreement and may lead to the company’s suspension from trading.

Earlier this month it notified the Securities and Exchange Commission (SEC) of its inability “to resolve a material uncertainty concerning the collectibility and recovery of certain assets.”

LKI has notified AMEX that it intends to submit a plan of compliance by September 30, with details about action it has taken or will take that will bring it into compliance by no later than December 15, 2009.

According to the AMEX letter, dated September 16, if LKI does not submit a plan of compliance, or if the plan is not accepted, LKI will be subject to delisting.

LKI, a U.S. Diamond Trading Company (DTC) Sightholder, suffered from its worst fourth quarter results in more than a decade, $30 million. Annual sales are expected to total $192 million.