Axiotron Provides Update on Restructuring Progress in Eighth Biweekly Status Report
Axiotron Corp. (AXO - TSX Venture), (the "Company") today issued this eighth biweekly default status report in accordance with National Policy 12-203 ("NP 12-203").
Overview of Default Status
In its news release on February 1, 2010 (the "Default Notice"), the Company announced that it did not file its audited annual financial statements for the fiscal year ended September 30, 2009, management's discussion and analysis (MD&A) of audited annual financial statements, and CEO and CFO certificates for audited annual financial statements before the prescribed deadline of February 1, 2010.
In respect of this late filing and pursuant to its application, the Company was granted a Temporary Management Cease Trade Order by its principal regulator, the Ontario Securities Commission (the "Commission"), on February 12, 2010, imposing restrictions on all direct or indirect trading in and acquisitions of securities of the Company by specific officers of the Company for a period of 15 days. On February 24, 2010, the Commission issued a Permanent Management Cease Trade Order (the "MCTO") with the same restrictions, to remain in effect until two full business days following the receipt by the Commission of all filings the Company is required to make.
Subsequent to the issuance of the MCTO, the Company announced in its second biweekly default status report that it did not file its quarterly financial statements for the three months ended December 31, 2009 (the first quarter of its fiscal year 2010) before the prescribed deadline of February 28, 2010.
The Company announced in its sixth biweekly default status report that trading in the Company's shares was halted at its request on May 12, 2010, with trading to remain halted pending approval by the Company's shareholders and the TSX Venture Exchange of a Fundamental Acquisition considered at a special meeting of the Company's shareholders on June 7, 2010.
Default Status Update
The Company reports that since the Default Notice and the seven subsequent biweekly default status reports (collectively, the "Default Status Reports"):
(i) There is no material change to the information contained in the Default Notice or the Default Status Reports that has not been generally disclosed.
(ii) There has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203.
(iii) There has not been any other specified default by the Company under NP 12-203, with the exception of the following:
Subsequent to the late filing referenced in the Default Notice, the company did not file its quarterly financial statements for the three months ended March 31, 2010 (the second quarter of its fiscal year 2010) before the prescribed deadline of May 31, 2010.
(iv) There is no other material information concerning the affairs of the Company that has not been generally disclosed since the Default Notice was issued, with the exception of the following:
Although a trading halt was already in place at the Company's request, the Commission issued a Temporary Cease Trade Order on June 11, 2010, that suspends trading in the Company's shares and expires June 26, 2010.
In its seventh biweekly default status report on May 28, 2010, the Company announced its intention to provide a new anticipated date for return to compliance in this report. In that regard, the Company anticipates that it will be able to return to compliance by July 12, 2010.
The following information was disclosed since the seventh biweekly default status report on May 28, 2010:
Shareholder Approval of Restructuring Plan
On June 7, 2010, at a special meeting of the Company's shareholders, the shareholders unanimously approved three resolutions which, once implemented pending the approval of the TSX Venture Exchange, will complete the Company's restructuring and allow the Company to conclude fundraising efforts initiated last year.
Supplemental Bridge Funding
With the approval of the resolutions at the aforementioned special shareholder meeting, the Company was able to secure bridge funding for the purposes of: (a) supplementing its working capital during the implementation of the restructuring, and (b) retaining its auditors to complete the previously delayed audit of its annual financial statements for fiscal year 2009, thereby enabling the Company to return to regulatory compliance.
As previously announced, the Company will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing biweekly default status reports in the form of news releases as long as it remains in default of the filing requirements.
More information about Axiotron is available at http://www.axiotron.com.
A high-tech solution hardware manufacturing company and longtime Apple Premier Developer and Mac Developer, Axiotron produces the award-winning Modbook(r). Following its unique vision of Customizing Your World(tm), Axiotron is dedicated to becoming a leading high-tech innovator through the conception and development of intriguing digital lifestyle products. In addition, Axiotron offers its product development expertise to companies in need of custom hardware solutions. Founded in January 2005, Axiotron is a publicly traded company listed on the TSX Venture Exchange (TSX-V: AXO) with corporate office in Toronto, Canada.
Axiotron, Modbook and Customizing Your World are trademarks or registered trademarks of Axiotron Inc. in the U.S. and other countries. Other company and product names may be trademarks of their respective owners.
This news release is based on current expectations and contains forward-looking statements that involve risks and uncertainties. Such statements are not guarantees of future performance and the respective actual results may differ significantly from the results discussed in the forward-looking statements. Risks and uncertainties about Axiotron's business are more fully discussed in Axiotron's disclosure materials filed with the securities regulatory authorities in Canada and available at SEDAR. Axiotron assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Andreas E. Haas
Tel: (310) 566-7921
Source: Axiotron Corp. (AXO - TSX-V)) http://www.axiotron.com
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