CITY OF INDUSTRY, CALIF., December 14 /CNW/ - American Telecom Services
Inc. (AMEX: TES), a provider of converged communications solutions, today
announced that the American Stock Exchange (the "Exchange") has accepted the
Company's plan of remediation with respect to its delinquent Annual Report on
Form 10-K for its fiscal year ended June 30, 2007 and that the Company has
made a reasonable demonstration of its ability to regain compliance with the
applicable continued listing standards of the Exchange and that the Company's
listing on the exchange will be continued pursuant to an extension granted
that will expire on January 16, 2008.
Additionally, the Company received a notice from the Exchange of its
determination that the Company has a financial impairment based on a review of
summary financial statements that will be included in the Company's Annual
Report on Form 10-K, that will be filed within the coming week. The summary
financials indicated losses and resulting levels of shareholder equity that
were below the Exchange's continued listing standards. The Company is required
to submit a plan of remediation (the "Plan") by January 4, 2008 advising the
Exchange of any action it has taken, or will take, that would bring the
Company into compliance with the Exchange's continued listing standards within
a 6-month period. Upon receipt of the Plan, the Exchange will evaluate it and
determine whether the Company has made a reasonable demonstration of an
ability to regain compliance with the Exchange's continued listing standards.
If the Plan is accepted, the Company may be able to continue its listing
during the Plan period, during which time it will be subject to periodic
reviews to determine whether it is making progress consistent with the Plan.
The payment of dividends on the Company's 8% Convertible Preferred Stock
will be delayed. The dividend payment is due on December 15, 2007. According
to the terms contained in the Company's Certificate of Designation for such
Preferred Stock, this delay in payment will result in an increase in the
dividend rate from 8% to 12% during the time that the dividend arrearage
remains in effect.
About American Telecom Services
American Telecom Services, a leader in converged communications
solutions, provides consumers with "Good Reasons to Pick-Up the Phone."
American Telecom Services combines new Interference Free DECT 6.0 feature rich
telephones bundled with a variety of pre-paid long distance and Voice over
Internet Protocol (VoIP or Internet Phone) calling plans designed to save
consumers up to 60% on their telecom service costs. The Company offers the
only home phones bundled with Pay N' Talk prepaid residential long-distance
services powered by IDT Telecom (patent-pending) and is the only provider of
DigitalClear(TM) Internet phones that include an adapter and router built
right into the base of the phones (patent-pending); Just "Plug In & Save!"
American Telecom Service's products are available nationally at more than
24,000 retail locations. Visit http://www.atsphone.com for Company and product
Safe Harbor Statement
Any statements in this press release that are not historical facts are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. In some cases, you can identify those
forward-looking statements by words such as "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"potential," or "continue" or the negative of those words and some other
comparable words. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from
historical results or those the Company anticipates. Factors that could cause
actual results to differ from those contained in the forward-looking statement
include, but are not limited to, those risks and uncertainties described in
the Company's prospectus dated December 11, 2006 and the other reports and
documents the Company files from time to time with the Securities and Exchange
Commission. Statements included in this press release are based upon
information known to the Company as of the date of this press release, and the
Company assumes no obligation to (and expressly disclaims any such obligation
to) publicly update or alter its forward-looking statements made in this press
release, whether as a result of new information, future events or otherwise,
except as otherwise required by applicable federal securities laws.
For further information:
For further information: American Telecom Services Inc. Contact: Company
Edward James, CFO 678-636-4394 Eddie.James@atsphone.com or Investors: Joe Noel
415-710-5464 925-922-2560 email@example.com