Deer Consumer Products Reports No Negative Corporate Developments; Announces Granting of Subpoena Power by New York Court Against Illegal Short Sellers
Deer Consumer Products, Inc. (Nasdaq: DEER) announced today that it has received calls from shareholders regarding the sudden drop in the price of its common stock due to false market rumors. Deer affirms that it is conducting its normal course of business and is not aware of any negative developments within the company or in its operations.
On March 28, 2011, Deer filed lawsuit against short sellers and fictitious bloggers alleging an orchestrated scheme to manipulate and depress Deer's stock. A New York State judge recently granted Deer permission to serve document subpoenas on various parties related to the lawsuit. Deer has sent out extensive notifications to various custodian banks and others and plans to subpoena other entities, including several known persons spreading rumors who are believed to be engaged in illegal short selling and located in California. Deer will continue to pursue all legal actions to protect shareholders value.
As previously announced, Deer's Board of Directors approved a $0.05 per share quarterly cash dividend for the 2nd quarter ending June 30, 2011. The dividend will be paid on July 15, 2011, to shareholders of record at the close of business on June 30, 2011. Deer also affirms its previously issued financial guidance for 2011.
As of June 16, 2011, Deer's common stock has been on the NASDAQ's Reg SHO list for 63 consecutive days, which suggests that a large number of Deer shares have not settled for 63 consecutive settlement days, reflecting continued illegal naked short selling in Deer's shares.
As of Q1/2011, Deer had shareholders' equity of approximately $150 million, or $4.45 per share in net assets and more than $28 million in cash without any long-term debts. Deer has sufficient cash on hand and has no plan to dilute our shareholders.
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