SARASOTA, Fla., May 9 /PRNewswire-FirstCall/ -- CPC of America, Inc. (BULLETIN BOARD: CPCFE) announced today that it received a letter from the NASDAQ Stock Market on May 8, 2006 stating that the common stock of CPC of America, Inc. will become ineligible for quotation on the OTC Bulletin Board effective as of the opening of trading on May 10, 2006. However, the common shares will continue to trade in the over-the-counter market and will be quoted in the electronic pink sheets under the symbol CPCF.PK until such time as the Company's common shares resume quotation on the OTC Bulletin Board.
The NASDAQ Stock Market has ruled the Company's common shares ineligible for quotation on the OTC Bulletin Board because the Company's Annual Report on Form 10-K/A filed with the SEC on May 4, 2006 does not include disclosure of management's evaluation of internal control over financial reporting as required by Section 404 of Sarbanes-Oxley Act of 2002.
As further discussed in the Company's Form 10-K/A, during 2005 management commenced the documentation and testing of the Company's internal control over financial reporting and conducted a substantial amount of testing of those internal controls under the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. However, management was unable to complete all of the required testing and required documentation as of May 4, 2006.
The Company is currently in the process of completing its evaluation of internal control over financial reporting and upon completing will file a further amendment to its 2005 Annual Report on Form 10-K to provide such evaluation, at which time it expects to resume quotation on the OTC Bulletin Board. The Company expects to file the amendment and resume quotation on the OTCBB within the next 30 days.
According to Rod Shipman, CEO of the Company, "Like many public companies, we have had our struggles and issues with the implementation of the internal control provisions of Sarbanes-Oxley; however we believe we are on track to complete our evaluation with the next few days at which time it will be turned over to our auditors for their assessment of management's evaluation. We are committed to completing this process and resuming quotation of our shares on the OTC Bulletin Board as soon as possible."
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
