Engex, Inc. Receives Additional Capital Contribution From Chairman/Principal Shareholder - Net Assets of Fund Exceed $5.0 Millio
08 Février 2010 - 11:30PM
PR Newswire (US)
NEW YORK, Feb. 8 /PRNewswire-FirstCall/ -- Engex, Inc. (American
Stock Exchange: EGX) today announced that, as of the close of
business on February 8, 2010, Engex, Inc. ("Engex" or the "Fund")
received shares of an NYSE-listed company as an additional capital
contribution from J. Morton Davis, the Chairman and principal
shareholder of the Fund, and, as a result, the net assets of the
Fund exceed $5.0 million. Engex announced on August 7, 2009 that it
had received notice from the NYSE Amex Staff indicating that Engex
was below certain of the Exchange's continued listing standards.
Specifically, Engex was not in compliance with Section 1003(a)(ii)
of the Company Guide with stockholders' equity (as in net assets)
of less than $4,000,000 and net losses in three of its four most
recent fiscal years, Section 1003(a)(iii) of the Company Guide with
stockholders' equity (as in net assets) of less than $6,000,000 and
net losses in its five most recent fiscal years, and Section
1003(b)(v)(A) of the Company Guide in that its total market value
of publicly held shares and net assets are each less than
$5,000,000 for more than 60 consecutive days. Engex was afforded
the opportunity to submit a plan of compliance to the Exchange. On
September 14, October 2, and October 9, 2009, Engex presented its
plan to the Exchange. On October 23, 2009, the Exchange notified
Engex that it accepted the Fund's plan to regain compliance with
Section 1003(b)(v)(A) of the Company Guide by February 8, 2010 and
Sections 1003(a)(ii) and 1003(a)(iii) of the Company Guide by
February 7, 2011. In accordance with a formal written Undertaking
entered into by Mr. Davis pursuant to the Plan, Mr. Davis had
agreed that, if necessary, he would make an investment in Engex to
purchase shares of Engex, to the extent necessary to increase the
net assets of the Fund to $5.0 million so that Engex would be in
compliance with Section 1003(b)(v)(A) of the Company Guide on
February 8, 2010. As the net assets of the Fund would otherwise
have been below $5.0 million at the close of business on February
8, 2010, Mr. Davis satisfied his obligation per the Undertaking by
transferring to the Fund sufficient shares of an NYSE-listed
company to bring the net assets of the Fund above $5.0 million; Mr.
Davis, however, elected not to receive any shares of Engex for such
investment and, accordingly, such investment is being treated by
Engex as an additional capital contribution to Engex by Mr. Davis.
As a result of the additional capital contribution by Mr. Davis in
accordance with the Plan previously submitted to the Exchange, the
net assets of the Fund were in excess of $5.0 million as of the
close of business on February 8, 2010. Engex, Inc. is a closed-end,
management investment company registered with the Securities and
Exchange Commission. Some statements contained in this news release
are forward-looking statements within the safe harbor of the
Private Securities Litigation Reform Act of 1995. These statements
generally are identified by words such as the Company "believes",
"expects", and similar language, or convey estimates and statements
that describe the Company's future plans, objectives or goals, and
include the Company's ability to submit a plan to the Amex, the
Amex's acceptance of the plan, the continued listing of the
Company's shares on the Amex, the Company's ability to increase its
stockholders' equity, continue operations, and meet its
obligations. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Further
information regarding risks and uncertainties which may cause
results to differ materially from those projected in
forward-looking statements, are included in filings by the Company
with securities regulatory authorities. Readers are cautioned not
to place undue reliance on forward-looking statements, which speak
only as of the date thereof. The Company does not undertake to
update any forward-looking statements that may be made from time to
time except in accordance with applicable securities laws.
DATASOURCE: Engex, Inc. CONTACT: Mr. Michael Siciliano, Engex,
Inc., +1-212-495-4524
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