HOUSTON, March 2 /PRNewswire-FirstCall/ -- Nova Biosource Fuels, Inc. , a refiner and marketer of ASTM quality biodiesel, announced that on February 27, 2009, the Company received an additional notice from NYSE Alternext US LLC, formerly known as the American Stock Exchange (the "Exchange"), indicating that the Company was not in compliance with Section 1003(a)(iv) of the NYSE Alternext US LLC Company Guide, formerly the American Stock Exchange Company Guide (the "Company Guide"), in that it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature. In order to maintain its Exchange listing, the Company must submit a plan of compliance by March 30, 2009, advising the Exchange how it intends to regain compliance with Section 1003(a)(iv) of the Company Guide by August 27, 2009. The Corporate Compliance Department of the Exchange will evaluate the plan and make a determination as to whether the Company has made a reasonable demonstration in the plan of an ability to regain compliance with the continued listing standards within the specified timeframe, in which case the plan will be accepted. If the plan is accepted, the Company may be able to continue its listing during the plan period up to August 11, 2009, during which time it will be subject to periodic review to determine whether it is making progress consistent with the plan. If the Company does not submit a plan, if the Company submits a plan that is not accepted or if the plan is accepted but the Company is not in compliance with the continued listing standards at the conclusion of the plan period or does not make progress consistent with the plan during the plan period, the Company may become subject to delisting proceedings in accordance with Section 1010 and Part 12 of the Company Guide.
In addition, the Exchange notified the Company that, since October 22, 2008, the Company's common stock has been trading below $0.25 per share and closed at $0.06 on February 26, 2009. The Exchange Staff is concerned that, as a result of its low selling price, the Company's common stock may not be suitable for auction market trading. Therefore, in accordance with Section 1005(f)(v) of the Company Guide, the Exchange notified the Company that it deems it appropriate under the circumstances for the Company to effect a reverse stock split to address its low selling price. If a reverse stock split is not completed in a reasonable amount of time, the Exchange may consider suspending dealings in, or removing from the list, the Company's common stock. There can be no assurance that the Company will be able to effectuate a reverse stock split within the time frame deemed satisfactory by the Exchange or, if effectuated, if a reverse stock split will result in an increase in the selling price of the Company's common stock in an amount sufficient to satisfy the requirements of Section 1005(f)(v) of the Company Guide.
About Nova Biosource Fuels, Inc.
Nova Biosource Fuels, Inc. is an energy company that refines and markets ASTM D6751 quality biodiesel and related co-products through the deployment of its proprietary, patented process technology, which enables the use of a broader range of lower cost feedstocks. Nova owns two biodiesel refineries: one in Seneca, Illinois with a nameplate capacity of 60 million gallons per year and one in Clinton, Iowa with a nameplate capacity of 10 million gallons per year. More information on Nova Biosource Fuels can be found at http://www.novabiosource.com/.
Forward Looking Statements
This news release contains forward-looking statements, including statements regarding Nova's plans, goals, strategies, intent, beliefs or current expectations. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Readers are urged to carefully review and consider the various risk factors disclosed by Nova in its reports filed with the Securities and Exchange Commission, including Nova's Annual Report on Form 10-K for the period ended October 31, 2008, which describes the risks and other factors that may affect Nova's business, financial condition, results of operations and cash flows, including the limited amount of available working capital, the volatile nature of the commodities and biodiesel markets and the risks to customer acceptance of biodiesel as a substitute for petroleum diesel. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, Nova's actual results may vary materially from those expected or projected in this release or in Nova's other filings.
