Intelligent Systems Responds to Recent “Short and Distort” Reports and Schedules Upcoming Conference Call
June 03 2019 - 4:45PM
On May 24 and May 30, 2019, separate commentaries about Intelligent
Systems Corporation were released by Aurelius Value and Grizzly
Reports. The anonymous authors never contacted the company for
clarifications or answers to any questions they may have. Had they
done so, Intelligent Systems would have pointed out factual errors,
incomplete information and erroneous conclusions which are rebutted
by Intelligent Systems’ public filings and other publicly available
information.
As an example, one
report stated:
“We believe that
Intelligent Systems Corp. (INS) has its employees set up or take
control of undisclosed shell companies in Asia, who then partake in
undisclosed related party transactions with INS intended to
either round-trip revenue back to INS or siphon money
out of the company.”
This statement is a complete falsehood in that
Intelligent Systems has NEVER had an employee set up undisclosed
companies or take control for the benefit of Intelligent Systems.
However, when an employee informed Intelligent Systems that he was
working on his own time with a group that wanted to set up a
company to enter the large India loan market, Intelligent Systems
asked to be a participant in the company and offered to invest if
the new company would use CoreCard as its processor.
An example of a similar Intelligent Systems
investment that was ignored in the commentaries was a $100,000
investment several years ago with the requirement that the company
use CoreCard as a processor. Eventually Intelligent Systems sold
most of that stock for ~$1,500,000 and has received over $5,000,000
in processing revenue from the company over several years. We
consider these investments, characterized in the commentaries as
“round-trip revenue or siphon money”, to be highly attractive
business transactions for the benefit of our shareholders. We are
minority shareholders without any ability to significantly
influence the operations of these investees.
We believe it is in the best interest of our
shareholders for management to remain focused on business rather
than debating or responding to rumor and innuendo. However, due to
the number of inquiries to the company, management believes it
important to now respond to these misrepresentations. It is also
important for interested parties to consider that the individuals
responsible for the “short and distort” reports have a financial
interest in a decline in the company’s stock price. We believe this
calls into question the motivation and intent behind the
allegations as well as the timing of its release.
Intelligent Systems management plans to host an
investor conference call on Wednesday June 5, 2019 at 11 A.M.
Eastern Time to discuss corporate developments and to address the
false and misleading statements and innuendo in the above-mentioned
commentaries.
Interested investors are invited to attend the
conference call by dialing 855-766-6518 and entering conference ID
9882445. A transcript of the call will be posted on the company’s
website at www.intelsys.com as soon as available after the
call.
About Intelligent Systems Corporation:
For over thirty-five years, Intelligent
Systems Corporation [NYSE American: INS] has identified, created,
operated and grown technology companies. The company’s principal
operations are CoreCard Software, Inc. (www.corecard.com) and its
affiliate companies. CoreCard designs, develops, and markets a
comprehensive suite of software solutions to corporations,
financial institutions, retailers and processors to manage their
credit and debit cards, prepaid cards, private label cards, fleet
cards, loyalty programs, and accounts receivable and small loan
transactions. CoreCard also offers prepaid and credit card
processing services using its proprietary software solutions.
CoreCard's flexible and proven processing platform has recently
been deployed in many countries in addition to the United States
including Australia, Canada, China, the United Arab Emirates,
France, Italy, Mexico, New Zealand, Singapore, South Africa and the
United Kingdom. Further information is available on the company’s
website at www.intelsys.com or by calling the company at
770-381-2900.
Forward-looking Statements:In
addition to historical information, this news release may contain
forward-looking statements relating to Intelligent Systems
Corporation and its subsidiary and affiliated companies. These
statements include all statements that are not statements of
historical fact regarding the intent, belief or expectations of
Intelligent Systems Corporation and its management with respect to,
among other things, results of operations, product plans, and
financial condition. The words "may," "will," "anticipate,"
"believe," "intend," "expect," "estimate," "plan," "strategy" and
similar expressions are intended to identify forward-looking
statements. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties and that actual results may
differ materially from those contemplated by such forward-looking
statements. The company does not undertake to update or revise any
forward-looking statements whether as a result of new developments
or otherwise, except as required by law. Among the factors that
could cause actual results to differ materially from those
indicated by such forward-looking statements are instability in the
financial markets, delays in product development, undetected
software errors, competitive pressures, changes in customers’
requirements or financial condition, market acceptance of products
and services, the impact of new or changes in current laws,
regulations or other industry standards, risks relating to
unauthorized access to confidential information due to criminal
conduct, attacks by hackers, employee or insider malfeasance and/or
human error and declines in general economic and financial market
conditions, particularly those that cause businesses to delay
purchase decisions.
Contact:
Intelligent Systems
Corporation
Matthew A. White, Chief Financial
Officer
770-564-5504
matt@intelsys.com
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