YES! YES! YES!!!!
Thursday October 31 11:52 AM EDT
Legal Opinion Declares Genesis Insurance & Financial Services
Non-Designated Security:
Company Clears Major Wall Street Compliance Hurdle
CHATTANOOGA, Tenn., Oct. 31 /PRNewswire/ -- Genesis Insurance and Financial Services, Inc., (Nasdaq: GIFS)
(GIFS) announced today that it has obtained a landmark legal opinion from its Corporate SEC Counsel declaring GIFS to be
a non-designated security.
This legal opinion may be relied upon by third parties including the compliance departments of registered securities
broker/dealers which typically prohibit or restrict their brokers from discussing designated securities, commonly called "penny
stocks," with their client base.
Genesis Chairman and CEO, Mohamed Khairy Mohamed Zayed, II stated "this legal opinion tells Wall Street's compliance
officers -- in other words -- with $140 million in net assets, GIFS is not a 'penny stock.' It opens the door of many national,
regional, and local firms to begin talking about our stock with thousands of clients nationwide. We believe this marks a true
milestone in our trek off of the electronic bulletin board to the higher, more-recognized trading arenas."
Genesis' $140 million in assets over qualifies it for the Nasdaq Small Cap Exchange. As previously reported, management
has announced its intent to reapply to the Nasdaq National Market System (NNM) when its stock price reaches prerequisite
levels. GIFS recent trading range has been $2.50 to $3.50. With approximately 20,328,000 shares outstanding, GIFS has an
estimated book value of over $7.00 per share.
Additionally, the company confirmed today that the October 28, 1996 report of a restricted shareholder filing to register for
sale 300,000 shares of recently issued 144 restricted stock was the result of miscommunication between the shareholder and
a brokerage firm safekeeping the shareholder's securities. Both the shareholder and brokerage firm acknowledge that no
exemption for registration is available for these securities and the shareholder has reiterated his intent to abide by the
two-year Rule 144 restrictions applicable.
The brokerage firm has filed the appropriate amendment to reflect the client's withdrawal of the sale; and, it is returning the
shareholder's securities. Furthermore, the shareholder has entered into an agreement with the company clarifying the terms of
his stock lock-up conditions to prevent any further misunderstanding. Mr. Zayed went on to state that the issue of these
300,000 shares in no way effects the company's on-going buyback program previously announced. Genesis Board of
Directors has extended the 400,000 share authorization of this program through the first quarter of 1997 so that it may
proceed in an orderly manner without market disruption.
For more information, contact Investor Relations at 423-266-7544 or via fax at 423-266-7760. The company may also be
reached via E-mail at investor.relations.genesis@juno.com. SOURCE Genesis Insurance & Financial Services, Inc. |
