In Brief: Dep
This article was originally published in The Rose Sheet
Executive Summary
Dep: NASDAQ transferring company's Class A and Class B shares from its national market to its SmallCap market effective Nov. 2, Dep announces Nov. 1. According to Dep, NASDAQ shifted the issues because the company failed to meet the criteria for net tangible assets set up under the National Market System. Dep explains that NASDAQ's calculation excludes goodwill associated with the Aug. 1993 purchase of the Agree and Halsa brands from S.C. Johnson, adding that goodwill is an asset under generally accepted accounting principles. The firm's lawsuit against S.C. Johnson, related to the acquisitions, is slated to go to trial on Nov. 10. Separately, Dep reports Oct. 30 that it has reached an agreement in principal with its bank group that includes a $25 mil. working capital commitment and reduced quarterly term loan payments through April 1, 1996. Under the amended term and working capital agreement, Dep's Dec. 30, 1995 payment will total $500,000 (down from $9.6 mil.). The firm also must pay a principal payment of $8.3 mil. on April 15, 1996...