Aether (NASDAQ:AETH)
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From Jun 2019 to Jun 2024
Aether Holdings, Inc. (Nasdaq:AETH), announced today
that it has engaged Jefferies & Company, Inc. to provide advisory
services in connection with its ongoing evaluation of additional
business strategies to increase shareholder value. The Company said
that it engaged Jefferies to provide management and the board of
directors with independent professional advice regarding existing
opportunities under evaluation by the Company, as well as to gain
access to additional opportunities that might otherwise not be readily
available.
"Over the past several quarters we have been presented with a
significant number of business opportunities which have the potential
to create value for our shareholders," said David S. Oros, Aether's
Chairman and CEO. "We have engaged Jefferies to spearhead an
accelerated evaluation of these and other potential business
opportunities that appear most likely to allow us to realize more of
the value of Aether's $1 billion-plus net operating and capital loss
carryforwards."
The Company added that it will continue to manage its existing
mortgage-backed securities portfolio, which totaled approximately
$253.9 million as of December 31, 2005. The Company also reiterated
that as a result of continued increases in the federal funds rate,
along with the recent inversion of the yield curve, it does not expect
to acquire additional mortgage-backed securities or further leverage
its portfolio in the near term.
About Aether Holdings, Inc.
Aether Holdings owns and manages a leveraged portfolio of
mortgage-backed securities through its wholly-owned subsidiary Aether
Systems, Inc.
About Jefferies
Jefferies, a global investment bank and institutional securities
firm, has served growing and mid-sized companies and their investors
for over 40 years. Headquartered in New York, with more than 25
offices around the world, Jefferies provides clients with capital
markets and financial advisory services, institutional brokerage,
securities research and asset management. The firm is a leading
provider of trade execution in equity, high yield, convertible and
international securities for institutional investors and high net
worth individuals. Jefferies & Company, Inc. is the principal
operating subsidiary of Jefferies Group, Inc. (NYSE:JEF;
www.jefferies.com).
Forward-Looking Statement Disclosure
This press release contains "forward-looking statements," as such
term is used in the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include those regarding the Company's
expectations about anticipated future cash balances and expense
reductions. When used herein, the words "anticipate," "believe,"
"estimate," "intend," "may," "will," and "expect" and similar
expressions as they relate to the Company or its management are
intended to identify such forward-looking statements. Forward-looking
statements are based on current expectations and assumptions, which
are subject to risks and uncertainties. They are not guarantees of
future performance or results. The Company's actual results,
performance or achievements could differ materially from the results
expressed in, or implied by, these forward-looking statements. Factors
that could cause or contribute to such differences include: (1) in
light of market conditions, the size of our MBS portfolio and the
amount of leverage we incur may remain below targeted levels, which
may result in lower earnings than if we had a larger, more highly
leveraged portfolio; (2) our future financial results may be
negatively affected by contingent or retained liabilities relating to
businesses that we have sold; (3) our MBS business involves
significant risks related to changes in interest rates and the
complexities of managing the overall yield of a leveraged portfolio;
(4) leverage that we incur to expand the size of the MBS portfolio may
limit our financial flexibility and could have a substantial negative
effect on our financial results if we do not successfully manage the
risks of borrowing; (5) we may not be able to realize value from our
accumulated tax loss carryforwards, because of a failure to generate
sufficient taxable earnings, regulatory limits or both; (6) in
managing the MBS portfolio, we will depend heavily on third party
investment managers and financial advisors and consultants, and there
is no assurance that such third parties will continue to work with us,
in which event our performance could be negatively affected; (7) our
financial condition could be negatively affected by post-closing
indemnity claims relating to the sale of our Transportation segment,
as the buyer of that business has alleged significant claims, which we
are vigorously disputing; (8) as a result of continuing negative
market conditions for the MBS business, we may pursue additional or
different business strategies that involve new or additional risks,
and there is no assurance we will be able to identify or successfully
implement any such additional or different strategies; (9) we may not
be successful in identifying or implementing new or additional
business strategies; (10) if we decide to pursue a new business
strategy that requires us to sell a portion or all of our MBS
portfolio, we may suffer losses on the sale of these securities; and
(11) other factors discussed in our filings with the Securities and
Exchange Commission. Aether undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.