EC) said today that, because the company's shareholder equity
has fallen below levels required for the American Stock Exchange's (AMEX) Emerging Company Marketplace (ECM), the AMEX has informed the company that it is reviewing Statordyne's securities for continued listing and has asked it to submit written plans showing how Statordyne's future growth will bring shareholder equity
back into compliance with ECM regulations.
Due to the partial financing of the mortgage loan portfolio with debt, non-performing mortgage loan balances are currently estimated at approximately 51% of total shareholder equity
and approximately 95% of common shareholder equity
The shareholder equity
has increased to more than $40 million and is validated by the inclusion of four securities in publicly listed companies.
The notice advised that in the opinion of the AMEX, the Company is not in compliance with Section 1003(a)(i) of the Company Guide with shareholders equity of less than $2 million and losses from continuing operations and/or net losses in two out of its three most recent fiscal years and Section 1003(a)(ii) of the Company Guide with shareholder equity
of less than $4 million and losses from continuing operations and/or net losses in three out of its four most recent fiscal years.
This standard requires that member companies that have incurred losses in their five most recent fiscal years must maintain a shareholder equity
balance of at least $6,000,000.
1 million in shareholder equity
is even more important to our business model.
at the end of 2003 was negligible.
At the same time the Company built a balance sheet with over $10 million in shareholder equity
that has consistently included over $1 million in cash.
The company's mission is to consistently build shareholder equity
through accretive acquisitions, to continue providing both stock and cash dividends to its shareholders, and to create and promote synergistic relationships among portfolio companies and affiliates.
MIchael Blumenfeld, CEO, stated, "The increase in shareholder equity
and cash is expected to have broad reaching benefits for our shareholders as we put our new financial strength to work both internally and externally.
30, 2002, Cole had assets of $1,290,795 and shareholder equity
(deficit) of ($310,428).
In addition, it increases net shareholder equity
by $8 million.