Equus Takes Action to Collect $2.3 Million from Trulite
April 23 2010 - 2:10PM
Business Wire
Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Fund”)
today announced that on April 22, 2010, it had taken action to
collect $2.3 million owing from Trulite, Inc., a portfolio company
of Equus. The loan to Trulite was originated by Paula Douglass (who
until March 2010 had been an officer of the Fund and a member of
the Fund’s Investment Committee). Trulite defaulted on the Loan
from Equus on January 26, 2010.
“We are very disturbed that Jonathan H. Godshall, CEO of
Trulite, John D. White, Chairman of Trulite, and Paula Douglass, a
Director of Trulite, have been put forward by the ‘Committee to
Enhance Equus’ (The Douglass Committee) as nominees for Directors
for your Fund,” said Richard Bergner, Chairman of the Fund. “The
appointment of these proposed nominees would not be in the best
interest of the Fund’s shareholders, as these Directors would have
a clear conflict in their duty to protect the interest of the
Fund’s shareholders versus their duty to protect the assets of
Trulite, which is in default on a $2.3 million loan from the
Fund.”
In early 2007, Trulite commenced trading on the OTC Bulletin
Board and on March 31, 2008 had a market capitalization in excess
of $14 million. In July 2008, Paula Douglass was appointed to the
Board of Trulite. By June 2009, Trulite’s stock price declined and
last traded at a penny per share in July 2009 with a market
capitalization of approximately $200,000.
About Equus
The Fund is a business development company that trades as a
closed-end fund on the New York Stock Exchange, under the symbol
"EQS". Additional information on the Fund may be obtained from the
Fund’s website at www.equuscap.com.
This press release may contain certain forward-looking
statements regarding future circumstances. These forward-looking
statements are based upon the Fund’s current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in
particular, the risks and uncertainties described in the Fund’s
filings with the SEC. Actual results, events, and performance may
differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof.
The Fund undertakes no obligation to release publicly any revisions
to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement
in this release does not constitute an admission by the Fund or any
other person that the events or circumstances described in such
statements are material.
Important Information
The Fund has filed a definitive proxy statement and other
relevant documents concerning the 2010 Annual Meeting of
Stockholders with the United States Securities and Exchange
Commission (“SEC”) on April 12, 2010. Before soliciting proxies,
the Fund will provide stockholders with the definitive proxy
statement. The Fund advises stockholders to read the definitive
proxy statement because it contains important information about the
election of directors and any other matters to be presented at the
2010 Annual Meeting of Stockholders. Stockholders may obtain free
copies of the definitive proxy statement and other documents the
Company files with the SEC at the SEC’s website at www.sec.gov.
They may also access a copy of the Fund’s definitive proxy
statement by accessing www.equuscap.com. In addition, stockholders
may obtain a free copy of the definitive proxy statement and other
related documents by contacting Georgeson Inc. toll-free at
866-821-2606 (banks and brokerage firms should call 212-440-9800),
or email equus@georgeson.com.
The Fund, its directors, some of its executive officers and
certain other of its employees are participants in the solicitation
of proxies in respect of the matters to be considered at the 2010
Annual Meeting of Stockholders. Information about the participants
is set forth in the definitive proxy statement. Information about
the participants’ direct or indirect interests in the matters to be
considered at the annual meeting is also contained in the proxy
statement referred to above.
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