iLinc Elects to Deregister
13 Fevereiro 2009 - 7:30PM
Business Wire
iLinc (AMEX:ILC), a leader in web conferencing, desktop video
conferencing software, filed paperwork today with the Securities
and Exchange Commission to terminate the Company�s registration
under the Securities Exchange Act. As a result, the Company�s
reporting obligations under the Securities Exchange Act
automatically have been suspended and the Company will no longer be
trading on the NYSE Alternext exchange starting Monday, February
16, 2009. The Company had been engaged for over a year in a study
of the benefits and costs associated with being publicly traded as
a reporting company. After careful analysis, deliberation and
discussion, the Board of Directors concluded that deregistration
was in the best interests of iLinc�s stockholders, and the most
logical choice given all circumstances.
James M. Powers, Jr., President and Chief Executive Officer of
iLinc, said, �We have been engaged in a thorough analysis of the
benefits and costs associated with remaining a small reporting
company for some time now. The recent downturn in the stock market,
the continuing recession, and the high cost of capital were
precipitating factors that made us believe the decision to
deregister was the proper direction for iLinc.�
Dr. Powers continued, �Simply put, we do not believe that we are
likely to derive the traditional benefits of being public and the
costs are continuing to rise. Our depressed stock price effectively
removed the use of our stock as currency for additional capital or
strategic acquisitions. Furthermore, we currently spend almost
$500,000 per year just to remain a publicly traded reporting
company, and anticipated increasing regulatory burdens are likely
to increase those costs. In addition to the anticipated savings,
deregistration will permit our employees to focus on sales,
marketing and software development activities, rather than public
filings. We see the redirection of that cash towards revenue growth
and ultimate profitability as a more judicious use of a precious
resource. Finally, while we could have taken steps to remain listed
with the NYSE Alternext exchange through the conversion of debt or
a capital raise, doing so in these market conditions would have
been extremely dilutive to existing stockholders. Delisting by the
NYSE Alternext exchange and listing on the bulletin board (OTC)
exchange would have been another alternative, but that alternative
would not have eliminated the cost of remaining a reporting
company. So with the combination of those factors and many others,
we believe that the decision to deregister is the most prudent
decision for the ultimate benefit of our stockholders, customers
and employees alike.
�Please understand that we view deregistration as a first step
and we have also begun exploring all strategic options available to
the Company. We remain well-positioned in a growing video and web
conferencing market and are seeing increasing sales transaction
volume that is providing compounding SaaS revenue growth. From the
foundation of those upward revenue trends and the expense savings
associated with deregistration, we plan to take additional steps
that will ultimately obtain for our stockholders the true value of
the Company,� concluded Dr. Powers.
About iLinc Communications, Inc.
iLinc, a recognized leader in web conferencing, desktop video
conferencing software and collaboration solutions, aims to
revolutionize the way organizations meet and communicate. Through
its software and services, iLinc liberates people by enabling them
to get more done, travel less, achieve work-life balance while
preserving the environment. iLinc offers the only enterprise-class
web and video conferencing software that allows customers to choose
between a software-as-a-service (SaaS) rental model or a
traditional software purchase model, in combination with hosting by
iLinc or on-premise installation. iLinc is headquartered in
Phoenix, Arizona.
This press release contains information that constitutes
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Any such forward-looking statements involve risk and uncertainties
that could cause actual results to differ materially from any
future results described within the forward-looking statements.
Factors that could contribute to such differences are disclosed in
the Company�s annual report on Form 10-K, quarterly reports on Form
10-Q, and other reports filed with the Securities and Exchange
Commission. The forward-looking information provided herein
represents the Company�s estimates, beliefs, judgments and
expectations as of the date of the press release, and subsequent
events and developments may cause the Company�s estimates, judgment
and expectations to change. The Company specifically disclaims any
obligation to update the forward-looking information in the future.
Therefore, this forward-looking information should not be relied
upon as representing the Company�s estimates and expectations of
its future financial performance as of any date subsequent to the
date of this press release.
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