Sensar Continues To Explore Investment Options; Receives Delisting Notice From Nasdaq
SALT LAKE CITY, April 5 /PRNewswire/ -- Sensar Corporation (Nasdaq: SCII) announced today that it is continuing to explore various investment options to enhance shareholder value. Sensar currently holds minority investments in Jigami Corporation and Nex2, LLC.
In order to execute its strategy of making minority investments in private companies, Sensar must comply with the Investment Company Act of 1940. As reported in Sensar's Annual Report on Form 10-K for the year ended December 31, 2000, Sensar is attempting to qualify as a business development company under the Investment Company Act. Sensar does not, however, currently meet all of the requirements for a business development company election. Specifically, Sensar will need to cancel or otherwise negotiate the termination of substantially all of its outstanding stock options and, subject to shareholder approval, grant new options in compliance with the requirements of the Investment Company Act applicable to business development companies. Further, the current percentage of Sensar's assets invested in qualifying assets may not be sufficient to allow Sensar to become a business development company, or Sensar may need to increase the percentage of its assets invested in qualifying assets in order to maintain a business development company election.
If Sensar is able to satisfactorily resolve these issues, it intends to promptly file an election to become a business development company. If Sensar is unable to meet the requirements for a business development company, it may be necessary for Sensar to register as an investment company under the Investment Company Act. Registered investment companies are subject to restrictions and regulations that are significantly more burdensome than those applicable to business development companies. As a result, it may not be practical for Sensar to register as an investment company, and it may be necessary for Sensar to dispose of its investments or take other actions necessary to ensure compliance with the Investment Company Act. If Sensar is unable to become a business development company and does not register as an investment company, Sensar will have to abandon its strategy of making minority investments in private companies and either acquire an operating business or liquidate its assets.
Sensar has received notice from Nasdaq that its common stock will be delisted from the Nasdaq SmallCap Market at the open of business on April 11, 2001. The Nasdaq Staff has informed Sensar that the delisting is primarily due to the fact that Sensar continues to lack tangible business operations and does not currently qualify as a business development company under the Investment Company Act. Although Sensar disagrees with the Nasdaq Staff's determination, Sensar does not believe it would be prudent at this time to expend resources to appeal this decision. Following the delisting, Sensar expects that its common stock will trade on the OTC Bulletin Board.
Sensar intends to continue to pursue its investment strategy, subject to compliance with the Investment Company Act. Sensar expects that it could take several months to determine whether or not it is feasible for the company to become a business development company. Further, certain shareholder approvals may be required in connection with an election to become a business development company or any alternative course of action. Accordingly, Sensar has decided to reschedule its annual shareholders' meeting for the Fall of 2001. The time and date of the annual meeting will be announced at a later date.
This press release contains certain forward-looking statements concerning Sensar's proposed investment strategy and its attempts to become a business development company. Sensar's ability to qualify as a business development company and execute its investment strategy is subject to certain risks and uncertainties that could require the company to reevaluate its business strategy. These risks include the ability of the company to comply with the Investment Company Act, general risks relating to investments in private companies, the risk that Sensar may need to make follow on investments in portfolio companies in order to preserve its investments, and other risks and uncertainties identified in Sensar's Annual Report on Form 10-K for the year ended December 31, 2000.
SOURCE Sensar Corporation
CO: Sensar Corporation
ST: Utah
IN: CPR OTC
SU:
04/05/2001 17:00 EDT prnewswire.com |
