Universal Automotive Industries (Alsip, Illinois), has satisfied the Nasdaq Stock Market that it now meets market requirements for tangible assets and will not be delisted.

Universal is a manufacturer and distributor of braking products for the U.S. and Canadian automotive aftermarket under the UBP, Universal and Ultimate brands. Universal's financial condition has deteriorated in recent periods as margins were squeezed in the face of increased competition.

The company was notified earlier this year by Nasdaq that it faced delisting action because it failed to meet Nasdaq's requirement to maintain net tangible assets in excess of $2 million.

Universal then began negotiations with bearing supplier Wanxiang America (Mt. Prospect, Illinois), a division of Wanxiang Group (China), for a cash infusion.

The company successfully arranged for a $2.8 million investment from Wanxiang America which gave Wanxiang new Series A Preferred Stock. The Preferred can be converted to 2,014,380 shares of common stock, equivalent to 20% of Universal's shares.

Wanxiang's $2.8 million investment in Universal allowed the company to show the Nasdaq Listings Qualifications Panel pro forma net tangible assets of $3.3 million as of August 31, 2001.

Last week, the Listings Qualifications Panel accepted Universal's net tangible asset update and allowed it to continue its stock market listing.