Elinear (AMEX:ELU)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Elinear Charts. Click Here for more Elinear Charts.](/p.php?pid=staticchart&s=A%5EELU&p=8&t=15)
On July 31, 2006, eLinear, Inc. (AMEX:ELU) received a
letter from the American Stock Exchange indicating that the Company is
in non-compliance with the Exchange's continued listing standards of
Section 1003 of the AMEX Company Guide. Specifically, AMEX noted the
Company's failure to comply with Section 1003(a)(i) of the AMEX
Company Guide relating to shareholders' equity of less than $2,000,000
and losses from continuing operations and/or net losses in two out of
three most recent fiscal years and Section 1003(a)(ii) of the AMEX
Company Guide relating to shareholders' equity of less than $4,000,000
and losses from continuing operations and/or net losses in three out
of its four most recent fiscal years. The notice was based on a review
by the AMEX of the Company's Form 10-QSB for the three months ended
March 31, 2006.
The Company has been afforded the opportunity to submit a plan of
compliance to the AMEX by August 31, 2006 advising AMEX of the action
the Company has taken, or will take, that would bring it into
compliance with the continued listing standards listed above by June
30, 2007. If AMEX accepts the plan, the Company may be able to
continue its listing during the plan period of up to ten months,
during which time the Company will be subject to periodic review to
determine whether it is making progress consistent with the plan. If
AMEX does not accept the Company's plan, or even if accepted, if the
Company is not in compliance with the continued listing standards at
the end of the plan period or the Company does not make progress
consistent with the plan during such period, then AMEX may initiate
delisting proceedings.
On July 12, 2006 the Company announced that it signed a Letter of
Intent to acquire the operating assets of SweetWater Security Systems,
LLC, a Houston based provider of complex wireless video security
systems for Public Housing Projects throughout the Southeastern United
States. In the transaction, it is contemplated that eLinear will issue
25,000,000 shares of its common stock from authorized but unissued
shares for certain assets of SweetWater. Those assets consist of
certain accounts receivable, equipment, inventory, contractual
agreements and up to $3 million in cash. SweetWater primarily operates
in Louisiana, Mississippi, Alabama, and Tennessee and has completed
over $3 million in projects to date. The proposed transaction, if
completed, will result in a substantial increase in shareholders'
equity. This transaction is scheduled for closing sometime in the
fourth quarter and is subject to shareholder approval.
Another critical factor affecting eLinear's capability to regain
compliance will be the achievement of one of the Company's main goals
of operating income profitability on a month to month basis during
2006.
The Company is considering what other actions it may take to
regain compliance with the AMEX listing standards and intends to
submit a compliance plan to the AMEX Staff in a timely manner.
About eLinear, Inc.
eLinear, Inc. is a communications, security and compliance company
providing integrated technology solutions including information and
physical security, IP Telephony and network and storage solutions
infrastructure. Typically, the company's customers are Fortune 2000
and small to medium sized business organizations. eLinear's services
are offered to companies seeking to increase productivity or reduce
costs through investing in technology. eLinear has a national and
international footprint and has its headquarters in Houston, Texas.
For more information, see http://www.elinear.com.
Safe Harbor Statement
This press release contains statements that may constitute
forward-looking statements, including the company's ability to realize
the projected revenues from the newly announced project orders and the
future strength of the company's business and industry. These
statements are based on current expectations and assumptions and
involve a number of uncertainties and risks that could cause actual
results to differ materially from those currently expected. For
additional information about eLinear please visit www.elinear.com or
www.sec.gov. eLinear undertakes no obligation to update any
forward-looking statement that may be made from time to time by or on
behalf of the company, whether as a result of new information, future
events or otherwise.