Administrative Proceeding Settlement Reached
Emerging Enterprise Solutions, Inc. accepts offer to settle Administrative Proceeding with SEC.
Independence, KS (PRWEB) May 13, 2005 -- EESI confirms that on December 1, 2004 in Securities Exchange Act Release No. 50760, the SEC announced that it had temporarily suspended trading in common shares of Emerging Enterprise Solutions, Inc. and 25 other issuers that failed to make required periodic filings under the Exchange Act. The suspension ended on December 14, 2004. On February 15, 2005, the Securities and Exchange Commission (SEC") issued an Order Instituting Administrative Proceedings against EESI and several other issuers in Administrative Proceeding File No. 3,11830, seeking to revoke the registration of EESI common shares under Section 12(g) of the Exchange Act as a result of the issuers serious delinquency in filing Forms 10-KSB or Forms 10-QSB for several years as required by Section 13(a) of the Exchange Act and the Rules promulgated thereunder. On April 22, 2005, through its CEO Robert Baker, EESI accepted an offer to settle the Administrative Proceeding without admitting or denying the allegations of the Order. On May 3, 2005, an order was entered revoking the registration of EESI common shares under Section 12(g) of the Exchange Act.
Revocation of EESIs Section 12(g) alleviates the Companys obligation to file annual and quarterly reports under the Exchange Act and makes it ineligible for trading on the OTC Bulletin Board. However, we are advised that EESI shares will still be eligible to trade on the Pink Sheets. However, before we seek formal authority from the NASD for brokers to submit bid and ask quotations for EESI shares, we want to be sure that there is accurate current information about the Company publicly outstanding which will meet the requirements of SEC Rule 15c2-11 and the other criteria established by the NASD. We are working diligently to prepare all required financial statements and have them audited, and we have retained an auditor to perform that service. As soon as our audited financial statements are in hand, we will submit our Rule 15c2-11 materials for NASD approval through a member broker dealer, and promptly respond to such comments as may be forthcoming from the NASD.
Management apologizes for any inconvenience the suspension of trading in our shares, and the subsequent action filed by the SEC may have caused stockholders. Our failure to file the required Exchange Act reports was not willful, as we had been advised that our duty to file them had been suspended by the filing of a Form 15-D. However, we should have confirmed that fact before relying on the representations made to us to the detriment of the Company and its stockholders. We are making every attempt to learn what is required to fully comply with the disclosure requirements of the Securities Acts so we can meet all such requirements on a timely basis in the future.
Contact:
Robert E. Baker (620) 332-1260
Karl Zeidler (602) 810-9284
Jim Barber (801) 364-6500
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