Scheid Vineyards has received notice from Nasadaq saying it is not in compliance with its composition rules. The California-based company said yesterday (19 October) that it received a Nasdaq Staff Determination last Thursday, indicating that it fails to comply with Nasdaq's rules regarding a majority independent board of directors, nomination of directors, compensation of officers, and audit committee composition for continued listing and that its securities are, therefore, subject to delisting from the Nasdaq SmallCap Market.

"In order to comply with Nasdaq's rules regarding a majority independent board of directors and the requirement of at least three independent directors to serve on the company's audit committee, the board took two actions," the company said. "It appointed Keith Krum, formerly with Bank of the West, to the board of directors and to serve on the company's audit committee. It also accepted the resignation of Heidi Scheid from the board of directors. Ms. Scheid will continue to serve as senior vice president, treasurer and secretary of the company.

"The company believes that, as now constituted, its board of directors complies with Nasdaq's Marketplace Rules. If the company is not able to resolve these matters with Nasdaq prior to (today), the company intends to request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff determination. There can be no assurance that the panel would grant the company's request for continued listing."