LOS ANGELES, Nov. 8 /PRNewswire-FirstCall/ -- Cash Technologies, Inc. (Amex: TQ) ("Cash Tech" or the "Company") announced today that the American Stock Exchange (the "Exchange" or "AMEX") notified Cash Tech on November 2, 2007 that Cash Tech does not meet certain of the Exchange's continued listing standards as set forth in part 10 of the AMEX Company Guide (the "Company Guide). Specifically, Cash Tech 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 years; Section 1003(a)(ii) of the Company Guide with shareholders' equity of less than $4 million and losses from continuing operations and/or net losses in three out of its four most recent years; 1003(a)(iii) of the Company Guide for having shareholders' equity of less than $6 million and losses from continuing operations and/or net losses in its five most recent fiscal years; and Section 1003(a)(iv) of the Company Guide in that it has sustained such losses which are so substantial to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether such company will be able to continue operations and/or meet its obligations as they mature; and Section 301 of the Company Guide in that Cash Tech issued or authorized its transfer agent or registrar to issue or register, additional securities of a listed class prior to receiving notification from the Exchange that the securities have been approved for listing.
In addition, in accordance with Section 610(b) of the Company Guide, a company that receives an audit opinion that contains a going concern qualification must make a public announcement through the news media disclosing the receipt of such qualified opinion. In its Form 10-KSB for the fiscal year ended May 31, 2007, Cash Tech received an audit opinion that contained such a qualification but did not issue such a press release in a timely manner. Accordingly, notice is hereby given of the going concern qualification in the May 31, 2007 audited financial statements.
To maintain its listing, Cash Tech must submit a plan by December 3, 2007 advising the Exchange of actions it has taken, or will take, that would bring Cash Tech into compliance with the continued listing standards above by February 1, 2008. The Exchange will evaluate the plan and make a determination as to whether Cash Tech has made a reasonable demonstration in the plan of an ability to regain compliance with the Continued Listing Standards by February 1, 2008, in which case the plan will be accepted. If the Exchange does not accept the plan or if Cash Tech fails to meet the targets of the plan, the Exchange may initiate delisting procedures. If the plan is accepted, Cash Tech may be able to continue its listing during the plan period, during which time Cash Tech is required to make progress consistent with the plan and to regain compliance with the listing standards.
The Company intends to submit a plan to AMEX that shows Cash Tech's ability to regain compliance with all of the AMEX listing requirements. Specifically, to address liquidity issues the Company has raised $750,000 in new working capital of which $250,000 has funded and the remainder is scheduled to fund on Tuesday, November 13, 2007. Furthermore, the Company has engaged New York investment banking firm HPC Capital Management Corp. to arrange an additional $2,000,000 in working capital. Such financings, if successfully completed, are anticipated to carry the Company to a cash flow breakeven point.
In addition, the Company is pursuing plans to restore its stockholders' equity to meet the AMEX requirements. In particular, the Company is negotiating equity investments in complimentary businesses in the healthcare industry. Also the Company has submitted an offer to acquire the assets of Champion Parts, Inc. through its pending bankruptcy action. The default by Champion of its $9.5 million note to Cash Tech was the primary cause of the reduction of the Company's stockholders' equity. If successful, these actions would, in the opinion of management, bring the Company back into compliance with the AMEX listing standards.
Bruce Korman, Cash Tech's CEO, stated, "We have a successful track record of increasing stockholder equity. In 2005 and 2006 we successfully met targets to increase equity by more than $16 million to regain compliance with AMEX requirements. We are again taking aggressive action to protect our AMEX listing." Korman added, "In addition we are continuing to grow our core business and believe that positive developments in the marketing of our products will begin to generate increased market support and share value."
About Cash Technologies
Cash Technologies, Inc. develops and markets innovative data processing solutions in the healthcare and financial services industries. Its ClaimRemedi Services, Inc. subsidiary creates and markets healthcare revenue acceleration solutions -- learn more at http://www.Claim-Remedi.com. Its CashTechCard Systems, Inc. subsidiary creates and markets stored value card programs. For more information, visit http://www.cashtechcard.com.
Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include Cash Technologies' inability to timely submit a plan to AMEX, the rejection of the company's plan by AMEX, the inability of Cash Technologies to raise additional capital, sell some of its assets, or otherwise comply with the initiatives it expects to include in its AMEX plan.
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|SOURCE Cash Technologies, Inc.|
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