Onetravel (AMEX:OTV)
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OneTravel Holdings, Inc. (AMEX: OTV), a leading online
and offline provider of travel and leisure services, announced today
that it has been notified by the American Stock Exchange ("AMEX") that
the Company's common stock will be delisted from AMEX. This decision
was reached after a hearing conducted on March 9, 2006 by AMEX at
which the Company presented its reasons for continued listing on the
Exchange notwithstanding the Company's failure to comply with the
listing requirements as a result of the Company's failure to file its
annual report on Form 10-K and Form 10-Q's for the three month periods
ending September 30, 2005 and December 31, 2005. The Company has been
advised that its last day of trading on the AMEX will be Friday March
17, 2006. The Company's stock has been trading on the Pink Sheets for
in excess of thirty days and as a result of this trading activity, the
Company's common stock will continue to trade on the Pink Sheets
without interruption after it ceases to be traded on the AMEX. The
Company is considering whether it will exercise its rights to appeal
the delisting.
The Company plans to hold a conference call open to the public on
Tuesday March 21, 2006 at 4:15pm EST. Call in and replay information
will be provided in a subsequent press release.
Commenting on the news, OTV Chairman & CEO William A. Goldstein
stated, "Whereas we are disappointed by the AMEX's decision, the
delisting is not indicative of the performance of the Company. We have
built a formidable business as a pure play online travel company and
feel shares of OTV are significantly undervalued in the capital
markets. Our bookings have continued to increase month-over-month and
we are on track to hit our target of between $300 million and $330
million in bookings for the fiscal year ending June 30, 2006. Our
higher margin hotel bookings continue to increase and we are on track
to meet or exceed our hotel bookings projections. We have experienced
an extraordinary 300% growth in both the number of visitors to our
websites, currently at approximately 14 million unique visitors per
month, as well as individual searches, currently at in excess of 28
million per month."
Also commenting on the AMEX action, OTV President Marc Bercoon
added, "We recently negotiated an extension and waiver with the
holders of the Company's $15.6 million Secured Convertible Debentures,
and although this action by the AMEX triggers a technical default,
recent discussions indicate that this group will continue to work
amicably with the Company going forward. We are currently in
negotiations to extend the term of the $12.5 million promissory notes
currently due to the former shareholders of OneTravel, Inc. We will
update the public on the status of these negotiations when they are
completed. Overall, we continue to be optimistic and believe these
creditors are supportive of our business plans and will continue to
work with us. "
About OneTravel Holdings, Inc. (AMEX:OTV)
OneTravel Holdings, Inc. (www.onetravelholdings.com) derives all
of its revenues from its travel business subsidiaries, Farequest
Holdings, Inc., operating under the name 1-800-CHEAPSEATS,
www.cheapseats.com and OneTravel, Inc. operating under the names
www.onetravel.com, www.discounthotels.com and www.11thhour.com.
Statements in this news release about anticipated or expected
future revenue or shareholder value growth or expressions of future
goals or objectives, including statements regarding market conditions
or whether current plans to grow and strengthen the Company's business
will be implemented or accomplished, are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. When used in this release and documents, the words
"anticipate", "believe", "estimate", "expect" and similar expressions,
as they relate to the Company or its management, are intended to
identify such forward-looking statements, but are not the exclusive
means of identifying these statements. All forward-looking statements
in this release are based upon information available to the Company on
the date of this release. Any forward-looking statements involve risks
and uncertainties, including the risk that the Company will be unable
to grow or strengthen its business due to a lack of capital or a
change in market demand for its products and services or to fully or
effectively integrate all business units or the inability to realize
anticipated cost savings or revenue and stockholder value growth
opportunities associated with the acquisitions of Farequest Holdings,
Inc. and OneTravel, Inc. The Company has previously mentioned in
conference calls that gross bookings are not equal to gross revenues
under generally accepted accounting principles, so no inference can be
made about profitability based on gross bookings unless expressly
stated by the Company. The Company is also subject to those risks and
uncertainties described in the Company's filings with the U.S.
Securities and Exchange Commission ("SEC"), including the Company's
historical losses and negative cash flow, its need for additional
capital, including to finance the $12,500,000 promissory notes payable
to the former stockholders of OneTravel, Inc .and the right of holders
of the $15,625,000 of the Company's Secured Convertible Debentures to
accelerate and demand payment , and that future financing, if
available, will dilute the Company's current common stockholders, plus
the Company's inability to maintain listing with the American Stock
Exchange, could have an adverse affect on the Company's stock value
and liquidity. Additionally, forward-looking statements concerning the
performance of the travel and leisure industry are based on current
market conditions and risks, which may change as the result of certain
regulatory, political, or economic events, a shift in consumer travel
preferences, as well as those risks and uncertainties described in the
Company's SEC filings, which could cause actual events or results to
differ materially from the events or results described in the
forward-looking statements, whether as a result of new information,
future events or otherwise. Readers are cautioned not to place undue
reliance on these forward-looking statements. .