NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Engex Inc. (the "Company") today announced it has received notice from the staff of the NYSE Amex LLC (the "Amex") that, based on their review of publicly available information, the Company does not currently meet certain of the Amex's continued listing standards as set forth in Part 10 of the Amex's Company Guide (the "Company Guide").
Specifically, the Amex will consider delisting the securities of an issuer: (a) with stockholders' equity (as in net assets) of less than $4,000,000 and net losses in three of its four most recent fiscal years (Section 1003(a)(ii) of the Company Guide); (b) with stockholders' equity (as in net assets) of less than $6,000,000 and net losses in its five most recent fiscal years (Section 1003(a)(iii) of the Company Guide); and (c) having a total market value of publicly held shares and net assets less than $5,000,000 for more than 60 consecutive days (Section 1003(b)(v)(A) of the Company Guide).
The Amex has advised the Company that in order to maintain its listing, the Company must submit a plan by September 7, 2009 addressing how it intends to meet the listing standard under Section 1003(b)(v)(A) of the Company Guide by February 8, 2010 and the listing standards under Section 1003(a)(ii) of the Company Guide and Section 1003(a)(iii) of the Company Guide by February 7, 2011.
The Company is considering how to best address its current situation and intends to request an extension from the Amex to allow the Company time to fully review the best options for the Company and its stockholders. If the Company fails to submit a plan acceptable to the Amex, or even if accepted, if the Company is not in compliance with the continued listing standards at the end of the plan period or the Company does not make progress consistent with the plan during the period, then the Amex may initiate delisting proceedings.
The Company's common shares continue to trade on Amex under the symbol "EGX" but will become subject to the trading symbol extension "BC" to denote noncompliance with the Amex's continued listing standards.
Engex Inc. is a closed end mutual fund registered under the Investment Company Act of 1940, as a nondiversified, closed-end investment company.
On behalf of the Board of Directors Michael Siciliano Treasurer, Engex Inc.
Some statements contained in this news release are forward-looking statements within the safe harbor of the Private Securities Litigation Reform Act of 1995. These statements generally are identified by words such as the Company "believes," "expects," and similar language, or convey estimates and statements that describe the Company's future plans, objectives or goals, and include the Company's ability to submit a plan to the Amex, the Amex's acceptance of the plan, the continued listing of the Company's shares on the Amex, the Company's ability to increase its stockholders' equity, continue operations, and meet its obligations. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Further information regarding risks and uncertainties which may cause results to differ materially from those projected in forward-looking statements, are including in filings by the Company with securities regulatory authorities. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company does not undertake to update any forward-looking statement that may be made from time to time except in accordance with applicable securities laws.
Engex Inc.
CONTACT: Michael Siciliano of Engex Inc., +1-212-495-4200
