SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: SEPTEMBER 9, 1998
(Date of earliest event reported)
APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
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(Exact name of registrant as specified in its charter)
MINNESOTA 000-19621 41-1454591
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Commission File No. Identification No.)
7400 EXCELSIOR BOULEVARD
MINNEAPOLIS, MN 55426-4517
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(Address of principal executive offices) (Zip Code)
(612) 930-9000
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(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
Effective September 8, 1998, Appliance Recycling Centers of America,
Inc. (the "Company") was delisted from The Nasdaq SmallCap Market. The Company
cited the fact that it no longer complied with The Nasdaq Stock Market's
continued listing requirements. In addition, the Company announced that it is
continuing to pursue additional lines of credit as previously announced. The
Company also stated that it is continuing to intensify its focus on appliance
retailing. A copy of the press release is attached as an exhibit to this filing
on Form 8-K.
Item 7 (c). Exhibits.
10 Press Release Announces Delisting from The Nasdaq SmallCap Market
dated September 4, 1998
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned, hereunto duly authorized.
Dated: September 9, 1998 Appliance Recycling Centers of America, Inc.
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Registrant
By: /s/ Kent S. McCoy
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Kent S. McCoy
Chief Financial Officer
Exhibit 10
APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
7400 Excelsior Boulevard, Minneapolis, MN 55426 (612) 930-9000
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
KENT McCOY (612) 930-9000
ARCA ANNOUNCES DELISTING FROM THE NASDAQ SMALLCAP MARKET
SEPTEMBER 4, 1998--MINNEAPOLIS, MN--Appliance Recycling Centers of America, Inc.
(ARCA, Nasdaq SmallCap Market: ARCI) today announced that it has been notified
by The Nasdaq Stock Market that it is not in compliance with Nasdaq's
requirements for continued listing. The Company today notified Nasdaq of its
decision not to attempt to meet these requirements. This decision will result in
the delisting of the Company's common stock from trading on The Nasdaq SmallCap
Market, effective at the start of trading on September 8, 1998.
Edward R. (Jack) Cameron, president and chief executive officer, commented,
"While the Company is continuing to pursue additional lines of credit as
previously announced, complying with Nasdaq's requirements for continued listing
would have necessitated the issuance of additional shares of common stock at the
current price that would have resulted in a significant amount of ownership
dilution. We do not feel that such a substantial amount of ownership dilution is
an acceptable tradeoff simply to remain listed on The Nasdaq SmallCap Market at
this time."
Cameron said the Company is continuing to intensify its focus on appliance
retailing following the late July signing of an exclusive contractual
arrangement with Whirlpool Corporation. Under the expanded Whirlpool contract,
the Company is acquiring Whirlpool's distressed appliances (including "scratch
and dent" units with only cosmetic imperfections) from distribution centers
serving the Midwest and much of the Western U.S., including the entire West
Coast. This arrangement with Whirlpool is expected to provide ARCA's retail
outlets with a substantial supply of high-quality appliances that tend to sell
quickly at attractive prices.
ARCA, the nation's largest recycler of major household appliances, provides an
integrated range of collection, reuse and environmentally sound recycling
services.
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Statements about the impact of the new Whirlpool Corporation contract are
forward-looking and involve risks and uncertainties. If the contract with
Whirlpool Corporation does not meet expectations, the Company's revenue and
profitability may be materially and adversely affected.
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