I wrote two posts on Cereplast in 2011 questioning the company’s accounting methods. Still I read with surprise that on Friday, March 9, 2011 after the close of trading it filed the following statement (see below) with the SEC. On the positive side, AQR Capital a hedgie based out of Greenwich increased its holdings in Cereplast to nearly 7% from 2%. Could things get much better for this company based in California but with an investor relations advisor in neighboring Westchester County?
On March 7, 2012, Cereplast, Inc. (the “Company”) received notice from NASDAQ that it became non-compliant with the audit committee requirement set forth in Listing Rule 5605(c)(2), upon the resignation of Petros G. Kitsos as a director of the Company. The letter provides that the Company has until the earlier of the Company’s next annual shareholders’ meeting or February 21, 2013 or if the next annual shareholders’ meeting is held before August 20, 2012, then the Company must evidence compliance no later than August 20, 2012.
On March 5, 2012, the Company’s Board of Directors enacted a resolution to appoint Mr. Franklin Hunt to the Audit Committee. Mr. Hunt’s appointment becomes effective on April 1, 2012. Mr. Hunt has been a Director of the Company since September 2010. Upon the effectiveness of Mr. Hunt’s appointment, the Company’s audit committee will comprise of three independent directors as required by Listing Rule 5605(c)(2).