ECTS Update....
ELECTRONIC TRANSFER ASSOCIATES, INC. REPORTS ON
Events Surrounding Recent Trading Suspension
NEW YORK, March 11 /PRNewswire/ -- The management of Electronic Transfer Associates, Inc., (OTC Bulletin Board: ECTS), offers the following comments regarding the recent trading suspension in the Company's stock and discloses recent business developments.
On January 29, 1999, the Securities and Exchange Commission (SEC), issued a mandatory ten day suspension in the trading of the Company's stock. The reason given by the SEC for the suspension was that there were questions raised as to the adequacy and accuracy of publicly disseminated information concerning among other things, the business prospects and future earnings of the Company. The SEC also issued a subpoena in which it requested certain records in connection with a private investigation. Immediately following the suspension, the Company hired special counsel to assist in responding to the SEC subpoena, to which the Company has responded.
At 11:59 PM on February 11th, the trading suspension expired and no further suspension orders were issued. To facilitate the market makers compliance with certain securities law requirements, the Company voluntarily forwarded an updated disclosure statement to known market makers. Prior to January 29, 1999, shares of the Company's common stock were traded on the Over The Counter Electronic Bulletin Board (OTCBB). To the best of the Company's knowledge, the Company's shares presently are trading on the Pink Sheets. Shareholders can receive a quote and execute trades by contacting a stockbroker and informing them that the Company is trading on the Pink Sheets. The Company is investigating whether its securities will resume trading on the OTCBB.
The Company is proceeding with the development of its internet web-site, Marketoutlet.com, and is expecting the web-site to be ready to accommodate retailers in the second quarter of this year as previously announced. The Company has contracted with a third party web-site design firm, to design and build the web-site.
The Company is reconsidering its recent decision to effect a two for one forward split of the Company's common stock. As previously announced, the Company previously decided to split the stock, in response to volatile market conditions. In light of the recent events regarding the trading suspension, and the current stock valuation, the Company is reconsidering its decision. The Company is also re-evaluating its plans to use the public marketplace to raise the required capital necessary to proceed with its long range business plans. Alternative methods of financing may have to be considered.
Various recent events, including the trading suspension, have affected the willingness of private investors to provide short term funding.
The Company may seek alternative sources should its private investors decide to discontinue funding.
SOURCE Electronic Transfer Associates, Inc.
CONTACT: Thomas Telegades of Electronic Transfer Associates, Inc.,
212-588-9725, or fax, 212-588-9224/ |
