Photo: John Pastor via Flickr
Diamond Foods, the owner of Pop Secret popcorn and Kettle Brand potato chips, will not meet a deadline to restate past quarterly results and file delayed 2012 performance today, resulting in its possible delisting from the Nasdaq.Click here for updates >
The San Francisco based company expects to receive a delisting determination letter from the exchange, which could lead to its expulsion from the exchange.
“Diamond intends to request a Nasdaq hearing to appeal any delisting determination and to report on its plan for compliance with Nasdaq’s listing rules,” the company said in a statement.
The periods in question include the first and second quarters of fiscal 2012, the periods ended October 31, 2011, and January 31, 2012, as well as the third quarter statement that was due out on April 30.
In its request to the Nasdaq, Diamond has also asked to delay its annual shareholder meeting to a date after July 31. The company did not say when it would be able to file the quarterly restatements.
Shares are down more than seven per cent in pre-market trade.
The news adds to a barrage of disconcerting headlines that have plagued Diamond Foods, including the announcement that it would replace its chief executive and chief financial officers, Michael Mendes and Steven Neil, this February.
“After an extensive and thorough investigation, the Audit Committee concluded that the Company’s internal controls were inadequate and that certain grower payments for the 2011 and 2010 crops were not accounted for in the correct periods,” the company’s Chairman Robert Zollars said at the time.
The investigation follows mysterious payments Diamond made to walnut growers. The company said the sizable checks were to secure future supplies, however many of the recipients said they had no plans on delivering crop to Diamond.
Analysts have alleged that Diamond may have delayed payment to growers to offset costs during its fiscal 2011 year, inflating earnings as it entered negotiations with Proctor & Gamble to purchase the Pringles brand for $2.35 billion.
That deal ultimately fell through, as Proctor turned to Kellogg for the sale.
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