Global ePoint Issues Clarification on Notice from Nasdaq
Company Believes That It Will Be Able to Resolve the Nasdaq’s Comments in a Timely Fashion
CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--Sept. 29, 2005--Global ePoint, Inc. (Nasdaq: GEPT - News), a leading manufacturer of security technologies for the aviation, law enforcement, industrial and commercial markets, provided further clarification of its announcement earlier today concerning its Nasdaq notice. As earlier announced, the Company received a letter from the Nasdaq Stock Market on September 23, 2005 indicating its belief that Global ePoint did not comply with Marketplace Rule 4350(i)(1)(A), which requires shareholder approval for issuances of common stock or securities convertible into common stock to employees, officers, directors or consultants.
Over the last two years the Company has granted options and warrants to purchase a total of 200,000 common shares to certain consultants. These options and warrants were properly disclosed in the Company’s SEC filings and accounted for in the CompanyŠs financial statements, however they were not issued pursuant to a shareholder approved stock and option plan as required by Marketplace Rule 4350(i)(1)(A). The reissuance of such options and warrants is not expected to impact the Company’s financial results. The Company has informed the Nasdaq that it will reissue all such options and warrants under the Company’s 2004 Stock Incentive Plan, which was approved by shareholders at the Company’s 2004 annual meeting of stockholders held in December 2004, and the Company is in the process submitting to the Nasdaq its formal proposal for achieving compliance with Marketplace Rule 4350(i)(1)(A).
The Company believes that it will be able to resolve the Nasdaq’s comments in a timely fashion.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements, including the risk that the Company may be unable to resolve the Nasdaq’s comments for the Company’s past compliance with Marketplace Rule 4350(i)(1)(A . The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Global ePoint, Inc.
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