LOS ANGELES, Feb. 18 /PRNewswire-FirstCall/ -- The Board of Directors wishes to confirm to Stockholders that at its meeting on February 4, 2009 it resolved to file a Form 15 with effect from February 17, 2009. This initiative does not require the approval of stockholders but in the interests of keeping stockholders and other stakeholders informed the Board is making this Release.
The effect of this filing is to release the company from its United States Securities and Exchange Commission filing obligations. The process also results in the company's stock being removed from the Over The Counter Bulletin Board market listing with the company's stock, from this date, being recorded on the OTCBB "Pink Sheets".
The Board is cognisant of its obligations to all Stockholders to maintain a market for the company's stock. However there has been little, if any, liquidity in the stock for some time and despite a number of commercial initiatives the stock has languished below USD0.10. This process does not preclude current stockholders from seeking to trade their stock, although they will have to use brokers prepared to handle stock from the Pink Sheets.
The company has, historically, been required to engage the services of a PCAOB Auditor in the United States and Australia at an annual cost of approximately AUD145,000. In addition it has incurred associated US SEC Attorney and filing costs that when added to the audit results in an annual cost of around AUD250,000. These costs do not include the fees that will be applicable in 2010 for compliance with the Sarbanes Oxley Act Regulation 404.
The Board has considered that this cost is not acceptable while the company is striving to contain its "cash burn" and establish market initiatives in India and China.
The company has been actively seeking equity funds in international markets but has experienced extreme difficulties because of the current world economic downturn. Most institutional investors the company has approached have stated that they are unwilling to invest in a company that has:
The Board has therefore taken this decision in the interests of cash flow management and ultimate survival.
A number of administrative measures have already been implemented including the resignation of the company's CFO and those duties being undertaken by Mr Murray Bailey. Mr Hutcheson is continuing in the role of Company Secretary on an hourly rate (Part time). Mr Bailey has also agreed to reduce his annual consulting fees by two thirds, effective immediately. Further, Mr Bailey has not received any fees for the period since May 2008 and has personally funded the company since October 2008.
Administration and accounting costs have been significantly reduced through personnel moving from full time to part time contracts.
The Board advises that, in the interests of sound corporate governance, it will continue to engage a PCAOB registered auditor in Australia to undertake an annual Audit of the EESTech Inc Group and the company will prepare an annual Report for placement on the company's website, www.eestechinc.com. The costs for this engagement are expected to be less than 20% of the current costs. The Company believes that this will ensure that with an external audit, moving forward, that the accounts should provide a transparent indication of the company's financial progress.
The Board considers that this action will enable it to step out of the market, with its inherent pricing pressures, and assist it to build a viable business, based upon a sound business model.
The Board strategy is to return to the NASDAQ when it has achieved sales and strong cash flow. This will ensure that the pricing at "listing" will reflect the fundamental value in the company. This will also provide a flow on effect to current stockholders.
The Board confirms that the company has no external secured or unsecured term debt and consequently its primary asset, being its Patents and other intellectual property remains unencumbered.
Mr Bailey said: "The Board is cognisant of the strong support that has been provided by stockholders over a number of years. The Board thanks all stockholders for this on-going support and advises that it will continue to strive to add value back into the business and consequential positive effect on the stock."
February 17, 2009
Forward Looking Statement:
This stockholders press release includes statements that may constitute 'forward-looking' statements. The statements can generally be identified by phrases such as EESTech, Inc or its management 'believes' 'forecasts', 'estimates' or other words or phrases of similar import. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Similarly, such statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are forward-looking statements.
Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
Factors which would cause or contribute to such differences include, but are not limited to our ability to recruit and retain key personnel, the availability of funding for future operating requirements, our ability to protect our intellectual property, our ability to secure contracts for the installation of our products and our ability to develop and operate such projects successfully.
We urge you to carefully consider these factors and the information detailing other factors (which could cause actual results to differ materially). The forward-looking statements are based on current expectations and neither the Company nor its management assumes any obligation to update these statements.
For further information on EESTECH or its products please visit the company's website at www.eestechinc.com.
Released for EESTECH Inc. by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call:
Dennis Rutzou or Joanna Gitsham on +61 2 9413 4244.
|SOURCE EESTECH Inc.|
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