Diamond Foods today (12 December) admitted that it would miss a deadline to file its first-quarter results, adding to the uncertainty around the US snack maker.
The company is in the middle of investigating crop payments to walnut growers, a probe that has delayed its planned acquisition of global snacks brand Pringles from Procter & Gamble.
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Diamond said today that the investigation would not be completed until the middle of February, which meant it would not file its Form 10-Q for its fiscal first quarter before today’s deadline.
“Diamond will take steps to file its Form 10-Q for the first quarter as soon as practicable after conclusion of the investigation,” it said.
The company said it expected to receive a notice of deficiency from the NASDAQ Listing Qualifications Department.
“Diamond intends to submit a plan to regain compliance as quickly as possible. During this process, Diamond’s common stock will continue to be listed and traded on The NASDAQ Global Select Market,” the company added.
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By GlobalDataTwo weeks ago, Diamond issued a SEC filing warning that the investigation could “adversely impact” the company because it could force it to miss the deadline.
That statement said: “The time required or outcome of the investigation could result in the inability of Diamond to timely file required periodic reports under the Securities Exchange Act of 1934, as amended, which could result in the commencement of NASDAQ de-listing proceedings for Diamond’s common stock.”
The uncertainty surrounding Diamond was compounded last month when it emerged that director Joseph Silveira had died. CNBC reported his death as a suicide and that Silveira, a member of the snack maker’s audit committee, had recused himself from the walnut prices investigation. Diamond insisted his death was not linked to the probe.
Shares in Diamond were down 23.27% at $31.12 at 13:10 ET.
