SigmaTron International, Inc. Receives Nasdaq Notice Regarding Late Filing of Form 10-K

ELK GROVE VILLAGE, Illinois, Aug. 21, 2024 (GLOBE NEWSWIRE) — SigmaTron International, Inc. (the “Company”) today announced that on August 16, 2024, it received a delinquency notice letter from Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company is not in compliance with the continuous listing requirements under Nasdaq Listing Rule 5250(c)(1) because the Company failed to timely file its Form 10-K for the fiscal year ended April 30, 2024 (the “Form 10-K”). The notice letter has no immediate effect on the listing or trading of the Company’s common stock on The Nasdaq Capital Market.

The Company filed a Notice of Delayed Filing of its Form 12b-25 on July 30, 2024, indicating that the filing of its Form 10-K would be delayed because the Company requires additional time to complete fiscal year-end closing procedures in light of ongoing negotiations with the Company’s lenders regarding amendments to its credit agreements with J.P. Morgan Chase Bank, N.A. and TCW Asset Management Company, as Administrative Agent. These processes require significant resources from the Company’s financial, accounting and administrative staff, and as a result, the Company requires additional time to complete its quarterly review, including preparing and finalizing the Form 10-K.

Nasdaq has informed the Company that it must file a compliance plan (the “Plan”) within 60 calendar days or no later than October 15, 2024, setting forth how it intends to regain compliance with the Nasdaq listing rules and, if Nasdaq accepts the Plan, it may grant an extension of up to 180 calendar days from the original filing deadline of the Form 10-K or until February 12, 2025 to regain compliance.

The Company is working on completing its Form 10-K.

About SigmaTron International, Inc.

Headquartered in Elk Grove Village, Illinois, SigmaTron International, Inc. operates a single reportable segment as an independent provider of electronic manufacturing services (“EMS”). The EMS segment includes printed circuit board assemblies, electromechanical components, and fully assembled (box-built) electronic products. The Company and its wholly owned subsidiaries operate manufacturing facilities in Elk Grove Village, Illinois; Acuna, Chihuahua and Tijuana, Mexico; Union City, California; Suzhou, China; and Biên Hòa City, Vietnam. In addition, the Company maintains an International Procurement Office and a Center for Compliance and Sustainability in Taipei, Taiwan. The Company also provides design services in Elk Grove Village, Illinois, U.S.A.

Forecast statements

Caution: This press release contains forward-looking statements. Words such as “continue,” “anticipate,” “will,” “expect,” “believe,” “plan” and similar expressions identify forward-looking statements. These forward-looking statements are based on the Company’s current expectations. Because these forward-looking statements involve risks and uncertainties, the Company’s plans, operations and actual results could differ materially. Such statements should be evaluated in the context of the direct and indirect risks and uncertainties inherent in the Company’s business, including, but not necessarily limited to, the Company’s continued dependence on certain significant customers; the continued acceptance by the market of the products and services offered by the Company and its customers; pricing pressures from the Company’s customers, suppliers and the marketplace; the actions of competitors, some of whom may have greater financial or other resources than the Company; the variability of the Company’s operating results; the results of impairment tests on long-lived assets and goodwill; risks associated with any merger, acquisition or business combination, including the ability to achieve the expected benefits of acquisitions as well as the costs of acquisitions; the collectibility of delinquent receivables; variability in the Company’s customer requirements; the impact of inflation on the Company’s results of operations; the availability and cost of necessary components and materials; the impact of warfare on the supply chain; the ability of the Company and its customers to keep pace with technological changes in their industries; regulatory compliance, including with respect to conflict minerals; the continued availability and sufficiency of the Company’s credit arrangements; the cost of borrowing under the Company’s senior and subordinated credit facilities, including under the interest rate indices that have replaced LIBOR; rising interest rates; the ability of the Company to meet financial and restrictive covenants under its loan agreements; changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese regulations affecting the Company’s business; disruptions in the global economy and financial markets; public health crises, including COVID-19 and variants thereof; the continued availability of limited raw materials, exacerbated by global supply chain disruptions, necessary for the production of the Company’s products; the stability of U.S., Mexican, Chinese, Vietnamese and Taiwanese economic, labor and political systems and conditions; global business disruptions caused by the Russian invasion of Ukraine and related sanctions and the Israel-Hamas conflict; currency fluctuations; and the Company’s ability to manage its growth. These and other factors that could affect the Company’s future business and results of operations are identified in the Company’s Annual Report on Form 10-K and may be further described as risk factors from time to time in the Company’s filings with the Securities and Exchange Commission. These statements are made as of the date of such filings, and the Company undertakes no obligation to update such statements in light of future events or otherwise, except as required by law.

For more information, please contact:
SigmaTron International, Inc.
James J. Reiman
1-800-700-9095