NEW YORK, Feb. 8 /PRNewswire-FirstCall/ -- Engex, Inc. (American Stock Exchange: EGX) today announced that, as of the close of business on February 8, 2010, Engex, Inc. ("Engex" or the "Fund") received shares of an NYSE-listed company as an additional capital contribution from J. Morton Davis, the Chairman and principal shareholder of the Fund, and, as a result, the net assets of the Fund exceed $5.0 million.
Engex announced on August 7, 2009 that it had received notice from the NYSE Amex Staff indicating that Engex was below certain of the Exchange's continued listing standards. Specifically, Engex was not in compliance with Section 1003(a)(ii) of the Company Guide 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)(iii) of the Company Guide with stockholders' equity (as in net assets) of less than $6,000,000 and net losses in its five most recent fiscal years, and Section 1003(b)(v)(A) of the Company Guide in that its total market value of publicly held shares and net assets are each less than $5,000,000 for more than 60 consecutive days. Engex was afforded the opportunity to submit a plan of compliance to the Exchange. On September 14, October 2, and October 9, 2009, Engex presented its plan to the Exchange.
On October 23, 2009, the Exchange notified Engex that it accepted the Fund's plan to regain compliance with Section 1003(b)(v)(A) of the Company Guide by February 8, 2010 and Sections 1003(a)(ii) and 1003(a)(iii) of the Company Guide by February 7, 2011.
In accordance with a formal written Undertaking entered into by Mr. Davis pursuant to the Plan, Mr. Davis had agreed that, if necessary, he would make an investment in Engex to purchase shares of Engex, to the extent necessary to increase the net assets of the Fund to $5.0 million so that Engex would be in compliance with Section 1003(b)(v)(A) of the Company Guide on February 8, 2010. As the net assets of the Fund would otherwise have been below $5.0 million at the close of business on February 8, 2010, Mr. Davis satisfied his obligation per the Undertaking by transferring to the Fund sufficient shares of an NYSE-listed company to bring the net assets of the Fund above $5.0 million; Mr. Davis, however, elected not to receive any shares of Engex for such investment and, accordingly, such investment is being treated by Engex as an additional capital contribution to Engex by Mr. Davis.
As a result of the additional capital contribution by Mr. Davis in accordance with the Plan previously submitted to the Exchange, the net assets of the Fund were in excess of $5.0 million as of the close of business on February 8, 2010.
Engex, Inc. is a closed-end, management investment company registered with the Securities and Exchange Commission.
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 included 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 statements that may be made from time to time except in accordance with applicable securities laws.
Engex, Inc.
CONTACT: Mr. Michael Siciliano, Engex, Inc., +1-212-495-4524
