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.
Shareholder equity 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.
