The Middleby Corporation today announced that it received a letter from the Nasdaq Staff dated March 12, 2007, indicating that the Company failed to comply with the shareholder approval requirements for continued listing set forth in Nasdaq Marketplace Rule 4350(i)(1)[A] as a result of the Company’s inadvertent issuance in May 2006 of options to purchase 3,500 shares of the Company’s common stock to its outside directors without shareholder approval. The Company self-reported its non-compliance to the Nasdaq Staff on March 8, 2007 and, on its own initiative, immediately rescinded the option grants. Accordingly, the Nasdaq Staff has determined that the Company has regained compliance with Nasdaq Marketplace Rule 4350(i)(1)[A] and the matter is now closed.
Obviously it can be a bad thing when a company violates a rule that could cost it its market listing. On the positive side, the company self-reported and fixed the issue, so all now appears well. Given how busy the company has been with growing and making shareholders wealthier, we are inclined to cut them some slack.
MIDD 1-yr chart: