Press Release
QSound Labs Shares Continue Nasdaq SmallCap Market Listing on Conditional Basis
Compliance with Continued Listing Requirements must be Achieved by July 9
CALGARY, CANADA - June 19, 2001 - QSound Labs, Inc.
(NASDAQ: QSND), today announced that its common shares will continue to be
listed on the Nasdaq SmallCap Market pending demonstration, on or prior to
July 9, 2001, of the Company's compliance with Nasdaq's $1.00 minimum bid
price requirement, and the ability to sustain compliance on a long-term
basis.
In order to achieve compliance with the minimum bid price requirement, the
Company has proposed a reverse stock split to its shareholders. The
Company is seeking to obtain approval for this proposal at the Special and
Annual Meeting of Shareholders scheduled to take place on June 28, 2001.
In order to be approved, a two-thirds majority of shareholders who vote at
the meeting, in person or by proxy, is required. Although the Company
believes that the reverse stock split will result in the ability of the
Company to meet Nasdaq's minimum bid price requirement, there can be no
assurance that it will do so.
The continued listing of the Company's shares follows a hearing held
before a Nasdaq panel on June 7, 2001 at which the Company addressed its
non-compliance with Nasdaq's minimum bid price requirement for continued
listing.
This release contains
forward-looking statements within the meaning of the Private Securities
Litigation Act of 1995 concerning, among other things, the liquidity and
marketability of the Company's stock. Investors are cautioned that such
forward-looking statements involve risk and uncertainties, which could
cause actual results, performance or achievements of the Company, or
industry results to differ materially from those reflected in the
forward-looking statements. Such risks and uncertainties include, but are
not limited to, risks associated with the Company's ability to effect a
consolidation of its shares on or before July 9, 2001, to comply with
Nasdaq's SmallCap Market minimum bid requirements, and to maintain its
listing on the Nasdaq SmallCap Market and other risks detailed from time
to time in the Company's periodic reports filed with the Securities and
Exchange Commission. Forward-looking statements are based on the current
expectations, projections and opinions of the Company's management, and
the Company undertakes no obligation to publicly release the results of
any revisions to such forward-looking statements which may be made, for
example to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.