Completion of SEC Litigation & Move On to Next Stage of Growth
Thursday March 17, 6:30 am ET
SHANGHAI, CHINA--(MARKET WIRE)--Mar 17, 2005 -- The Hartcourt Companies, Inc. (OTC BB:HRCT.OB - News) (Frankfurt: 900009) today announced that the SEC litigation shadowing the Company for much of the last two years is finally over with the entry of final judgment on March 11, 2005. The SEC litigation arose out of a 1999 securities offering by the Company conducted by former Hartcourt management. The court found that the Company violated the antifraud and registration provisions of the securities laws in connection with those transactions. The judgment imposed a total monetary judgment including a fine and disgorgement of $1.1mm in addition to other terms. While the potential financial impact of this SEC lawsuit was accrued in the 2003 financial statements, the Company has been actively seeking cash resources to pay the judgment.
With new management and a new board of directors installed in the second half of 2004, the Company has divested its unprofitable businesses, engaged competent auditors and retained reputable law firms to advise it in connection with its daily business operations. Now with the SEC litigation over, the Company is finally able to move beyond its past and focus all of its resources to develop the next stage of its China business. The Company is actively engaged in acquisition talks with a number of prospective candidates and looks forward to bring the value back to Hartcourt and its investors.
The Company wishes to thank its loyal shareholders for their unwavering support in this difficult period of time. Management will hold another investor conference call prior to the release of its 2004 annual report. The specific time schedule will be announced in due course.
About Hartcourt
Hartcourt's achievements and operations can be found on its web site: www.hartcourt.com
Forward-looking statements
The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
Contact:
Contact:
Ms Tingting Ni
Tel: + 86 21 52138810
Fax: + 86 21 52138870
Email: ir@hartcourt.com
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Source: The Hartcourt Companies, Inc. |
