EESTECH Inc - Release From SEC Filing
February 18 2009 - 12:00PM
PR Newswire (US)
LOS ANGELES, Feb. 18 /PRNewswire-FirstCall/ -- The Board of
Directors wishes to confirm to Stockholders that at its meeting on
February 4, 2009 it resolved to file a Form 15 with effect from
February 17, 2009. This initiative does not require the approval of
stockholders but in the interests of keeping stockholders and other
stakeholders informed the Board is making this Release. The effect
of this filing is to release the company from its United States
Securities and Exchange Commission filing obligations. The process
also results in the company's stock being removed from the Over The
Counter Bulletin Board market listing with the company's stock,
from this date, being recorded on the OTCBB "Pink Sheets". The
Board is cognisant of its obligations to all Stockholders to
maintain a market for the company's stock. However there has been
little, if any, liquidity in the stock for some time and despite a
number of commercial initiatives the stock has languished below
USD0.10. This process does not preclude current stockholders from
seeking to trade their stock, although they will have to use
brokers prepared to handle stock from the Pink Sheets. The company
has, historically, been required to engage the services of a PCAOB
Auditor in the United States and Australia at an annual cost of
approximately AUD145,000. In addition it has incurred associated US
SEC Attorney and filing costs that when added to the audit results
in an annual cost of around AUD250,000. These costs do not include
the fees that will be applicable in 2010 for compliance with the
Sarbanes Oxley Act Regulation 404. The Board has considered that
this cost is not acceptable while the company is striving to
contain its "cash burn" and establish market initiatives in India
and China. The company has been actively seeking equity funds in
international markets but has experienced extreme difficulties
because of the current world economic downturn. Most institutional
investors the company has approached have stated that they are
unwilling to invest in a company that has: -- No sales -- No
liquidity in its stock The Board has therefore taken this decision
in the interests of cash flow management and ultimate survival. A
number of administrative measures have already been implemented
including the resignation of the company's CFO and those duties
being undertaken by Mr Murray Bailey. Mr Hutcheson is continuing in
the role of Company Secretary on an hourly rate (Part time). Mr
Bailey has also agreed to reduce his annual consulting fees by two
thirds, effective immediately. Further, Mr Bailey has not received
any fees for the period since May 2008 and has personally funded
the company since October 2008. Administration and accounting costs
have been significantly reduced through personnel moving from full
time to part time contracts. The Board advises that, in the
interests of sound corporate governance, it will continue to engage
a PCAOB registered auditor in Australia to undertake an annual
Audit of the EESTech Inc Group and the company will prepare an
annual Report for placement on the company's website,
http://www.eestechinc.com/. The costs for this engagement are
expected to be less than 20% of the current costs. The Company
believes that this will ensure that with an external audit, moving
forward, that the accounts should provide a transparent indication
of the company's financial progress. The Board considers that this
action will enable it to step out of the market, with its inherent
pricing pressures, and assist it to build a viable business, based
upon a sound business model. The Board strategy is to return to the
NASDAQ when it has achieved sales and strong cash flow. This will
ensure that the pricing at "listing" will reflect the fundamental
value in the company. This will also provide a flow on effect to
current stockholders. The Board confirms that the company has no
external secured or unsecured term debt and consequently its
primary asset, being its Patents and other intellectual property
remains unencumbered. Mr Bailey said: "The Board is cognisant of
the strong support that has been provided by stockholders over a
number of years. The Board thanks all stockholders for this
on-going support and advises that it will continue to strive to add
value back into the business and consequential positive effect on
the stock." Murray Bailey Chairman February 17, 2009 Forward
Looking Statement: This stockholders press release includes
statements that may constitute 'forward-looking' statements. The
statements can generally be identified by phrases such as EESTech,
Inc or its management 'believes' 'forecasts', 'estimates' or other
words or phrases of similar import. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Similarly, such statements herein
that describe the Company's business strategy, outlook, objectives,
plans, intentions or goals are forward-looking statements.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from forward-looking statements. Factors which would cause or
contribute to such differences include, but are not limited to our
ability to recruit and retain key personnel, the availability of
funding for future operating requirements, our ability to protect
our intellectual property, our ability to secure contracts for the
installation of our products and our ability to develop and operate
such projects successfully. We urge you to carefully consider these
factors and the information detailing other factors (which could
cause actual results to differ materially). The forward-looking
statements are based on current expectations and neither the
Company nor its management assumes any obligation to update these
statements. For further information on EESTECH or its products
please visit the company's website at http://www.eestechinc.com/.
Released for EESTECH Inc. by Dennis Rutzou Public Relations
(http://www.drpr.com.au/) For further information please call:
Dennis Rutzou or Joanna Gitsham on +61 2 9413 4244. DATASOURCE:
EESTECH Inc. CONTACT: Dennis Rutzou, or Joanna Gitsham, both for
EESTECH Inc., +61-2-9413-4244 Web Site: http://www.eestechinc.com/
Copyright