WELLINGTON, Fla., March 20 /PRNewswire-FirstCall/ -- The Quantum Group, Inc. (NYSE Amex: QGP) (http://www.quantummd.com/) has reported that Quantum received notice on March 17, 2009 from the NYSE Amex (formerly American Stock Exchange (the "Exchange")) notifying the Company that it is not in compliance with Section 1003(a)(iv) of the Company Guide. Specifically, the Exchange staff noted that the Company sustained losses which are so substantial in relation to its overall operations or its existing financial sources that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature.
Noel J. Guillama, Quantum President & CEO, commented on these developments, "Quantum completed a public offering in the middle of an economic crisis on December 13, 2007, and since that time economic conditions have continued to deteriorate. Many companies have contracted, or literally gone out of business since that time. Quantum has continued to perform as we reported year over year revenue growth of 288% (Fiscal Year 2007 to Fiscal Year 2008), filed for 18 provisional patents, and recently deployed what we believe to be the most comprehensive, patient-centric health information platform in the country - PWeR(TM) (Personal Wellness electronic Record). We have not stopped looking for additional capital resources, and have been engaged in active discussions with current stakeholders to assist the Company in providing our plan to the NYSE Amex. The focus of our plan will be three-fold: Successfully regain compliance as an NYSE Amex listed company for the benefit of our stakeholders, continue our efforts to enhance shareholder value by sustaining our triple-digit growth rate, and continue our active participation in the transformation of the healthcare industry. I remain optimistic by our prospects and am confident that our team, including management, employees and stakeholders, will double our efforts in the coming days to meet the challenges."
The Company intends to submit a plan by April 16, 2009 outlining its compliance strategy with the continued listing deficiency by September 17, 2009. If the Company's plan to regain compliance is accepted by the Exchange, the Company may be able to continue its listing during this period, during which time it will be subject to periodic review to determine progress consistent with the plan. If the Company does not submit a plan or if the plan is not accepted by the Exchange, the Company will be subject to delisting procedures as set forth in the Exchange Company Guide. Under Company Guide rules, the Company has the right to appeal the determination by the Exchange staff to initiate delisting proceedings and to seek a hearing before an Exchange Panel. The time and place of such a hearing will be determined by the Panel. If the Panel does not grant the relief sought by the Company, its securities could be delisted from the Exchange. There is no assurance that the Exchange staff will accept the Company's plan of compliance or that, even if such plan is accepted, the Company will be able to implement the plan within the prescribed timeframe.
Effective within five days of the receipt of the above-referenced deficiency, the Company's stock trading symbol will be ".BC" indicator denoting the Company's current noncompliance. The indicator will remain in place until the Company regains compliance with all applicable continued listing requirements.
Further, Quantum reported as per AMEX Company Guide Section 610(b), that its financial statements for the fiscal year ended October 31, 2008 included in the Company's Annual Report on Form 10-K, contained a going concern qualification from its independent accounting firm, Dazskal Bolton LLP. Additional information regarding the going concern qualification can be found in the Company's 10-K filed with the Securities and Exchange Commission on February 13, 2009.
About The Quantum Group, Inc.
The Quantum Group is an innovation-driven Healthcare Services Organization (HSO) that provides business process solutions, service chain management, strategic consulting and leading edge technology to the healthcare industry.
We have developed PWeR(TM), a cutting-edge, patent-pending healthcare technology platform that we believe to be in line with President Obama's agenda for healthcare reform. The Stimulus Package provides $19 billion for the implementation of healthcare information technology to infuse efficiencies, reduce costs and improve the quality of patient care. PWeR can integrate all of the functions a physician/provider, hospital, clinic and related professionals utilize in one patient-centric, web-based platform and falls well within the economic incentives offered by the new law. We believe we are positioned to be a catalyst for change as we take aim at the $700 billion inefficiency gap in the United States healthcare industry.
Certain statements contained in this news release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective company's Securities and Exchange Commission 10-KSB, 10-QSB, S-8, SB-2, S-1 and 8-K filings (and amendments thereto) that may cause actual results to materially differ from projections. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "may," "anticipates," "believes," "should," "intends," "estimates" "could" and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. Such risk factors include, without limitation, the ability of the Company to properly execute its business model, to raise substantial and immediate additional capital to implement its business model, to continue revenue growth trend in fiscal year 2009, to control patient medical cost relative to income received, to attract and retain executive, management and operational personnel, to continue growing its patient base, to negotiate favorable current debt and future capital raises, to negotiate favorable agreements with a diversified provider base and to continue to supply the services needed by its HMO clients as well as physician clients. We have further risk in the deployment of our technology platform, the utilization by our clients, technical and software setbacks, cost of development, as well as the capital to deploy it. We are subject further to interruptions of service. Company does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.
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