Wednesday June 23, 3:05 pm Eastern Time
Company Press Release
SOURCE: Wavetech International, Inc.
Wavetech International, Inc. Approved for Trading on OTC Bulletin Board
TUCSON, Ariz., June 23 /PRNewswire/ -- Wavetech International, Inc. (previously Nasdaq: ITEL) announced today that it has been approved for trading on the OTC Bulletin Board and has been notified that its Common Stock will begin trading as OTC BB: ITEL at any time.
On May 5, 1999 Wavetech received formal notification from the Nasdaq Stock Market that the conditional listing under which the Company had been operating had terminated and the Company was delisted from the Nasdaq SmallCap Market effective as of the close of the market May 4, 1999. At that time, the Company announced that it intended to apply for inclusion of its Common Stock on the OTC Bulletin Board as soon as possible.
As reported in the Company's 10Q, for the quarter ended February 28, 1999, the Company's stock had been trading under a conditional listing by Nasdaq. The Company was previously notified by Nasdaq that its Common Stock would be delisted from the Nasdaq SmallCap Market because it was not in compliance with the $1.00 minimum bid price requirement. The Company appealed Nasdaq's decision to delist its Common Stock for failure to meet this requirement at a hearing on November 19, 1998.
On December 9, 1998, the Company was notified by Nasdaq that its Common Stock would continue to be listed on the Nasdaq SmallCap market via an exception from the minimum bid price requirement, provided the Company met certain conditions, including consummation of the pending merger with DCI. One of the conditions was that the Company's common stock meet the $1.00 minimum bid price. To comply with this last requirement, on December 18, 1998, the Company effected a one-for-six reverse split, which had been previously approved by its shareholders on May 26, 1998. The Company satisfied each of the other conditions required by Nasdaq, with the exception of the requirement that it consummate the pending merger with DCI on or before March 31, 1999.
The Company asked Nasdaq to remove any further conditions to the continued listing of its Common Stock or, in the alternative, permit an extension through June 30, 1999 to either consummate the merger with DCI or demonstrate its ability to satisfy all continued listing requirements. The last request was denied by the listing qualifications panel, which cited the Company's failure to satisfy the merger requirement and other factors. The Company then announced that it had terminated the merger agreement with DCI pursuant to its terms because Wavetech had determined that it was not reasonably likely that the conditions to the merger would be satisfied prior to the expiration of the merger agreement. It was also previously announced that the SEC suspended trading in DCI's stock through May 14, 1999.
Wavetech remains committed to building a viable business under the recently announced licensing agreement with Softalk Inc. Softalk's technology is based on Microsoft's NT operating system, which Softalk believes will play an important role in redefining the next generation of communications systems.
Gerald Quinn, President and CEO of Wavetech, said, ''Softalk's technology is the future -- it's where telecom is heading. Softalk is already providing services in the marketplace and we intend to quickly establish market share and grow revenues using that technology.''
Wavetech International, founded in 1993, is a facilities-based communications company. In May 1999, Wavetech changed its business focus from traditional calling card services to next generation long distance services using Internet Protocol (IP). Wavetech delivers integrated voice, fax and data over a variety of digital networks, including the Internet, frame relay, dedicated data or traditional circuit-switched networks to corporate, wholesale and retail clients. The Company's services utilize proprietary software developed by Softalk, Inc. Through a worldwide licensing agreement with Softalk, Wavetech also provides marketing, sales, customer service and online billing for both Wavetech and Softalk clients.
This press release contains certain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, those factors detailed by Wavetech in its filings with the Securities and Exchange Commission.
CONTACT: Bill Roberts, 937-434-2700, or Ken Paneral, 847-729-8521, both of CTC, Inc.
SOURCE: Wavetech International, Inc. |
