Private Receives Warning from Nasdaq Regarding Late 10-K Filing

BARCELONA, Spain—Private Media Group (PMG) issued a statement today stating that it received a letter from The NASDAQ Stock Market dated April 18 informing the company that because it had “failed to file its Form 10-K for the period ended December 31, 2010, on or before its due date, April 15, 2011, it is not in compliance with NASDAQ Marketplace Rule 5250(c)(1) (the "Rule"), which requires that a listed company timely file periodic financial reports with the U.S. Securities and Exchange Commission as a condition to the continued listing of its securities.” PMG now has until June 17 “to submit a Plan to regain compliance with the Rule. If the Plan is accepted by NASDAQ, it has the authority to grant an exception to the Rule for up to 180 calendar days from the Filing's due date, October 12, 2011, to regain compliance with the Rule by filing any past due periodic SEC filings. “In determining whether to accept the Plan,” the statement continued, “NASDAQ will consider such things as the likelihood that the Form 10-K, along with any subsequent periodic filing that becomes due, can be made within the 180-day period, the Company's past compliance history, the reasons for the late filing of the Form 10-K, other corporate events that may occur within our review period, the Company's overall financial condition and its public disclosures. The announcement concluded, “The Company is finalizing the Form 10-K and intends to complete its filing within the next 10 days, and in any event prior to the expiration of the 60-day period in which to submit a Plan.” However, an unnamed source close to the case told AVN, "The only reason for this [late filing] is that the accountants will not sign off, which is not surprising given the violations of corporate governance and failure to enforce agreements with Milton that the Nevada action has been unearthing." More information about PMG financials can be found here.