EESTECH Inc - Release From SEC Filing
LOS ANGELES, Feb. 18/Medianet International - AsiaNet - First Call/ --
The Board of Directors wishes to confirm to Stockholders that at its meeting on
February 4, 2009 it resolved to file a Form 15 with effect from February 17,
2009. This initiative does not require the approval of stockholders but in the
interests of keeping stockholders and other stakeholders informed the Board is
making this Release.
The effect of this filing is to release the company from its United States
Securities and Exchange Commission filing obligations. The process also results
in the company’s stock being removed from the Over The Counter Bulletin Board
market listing with the company’s stock, from this date, being recorded on the
OTCBB “Pink Sheets”.
The Board is cognisant of its obligations to all Stockholders to maintain a
market for the company’s stock. However there has been little, if any, liquidity
in the stock for some time and despite a number of commercial initiatives the
stock has languished below USD0.10. This process does not preclude current
stockholders from seeking to trade their stock, although they will have to use
brokers prepared to handle stock from the Pink Sheets.
The company has, historically, been required to engage the services of a PCAOB
Auditor in the United States and Australia at an annual cost of approximately
AUD145,000. In addition it has incurred associated US SEC Attorney and filing
costs that when added to the audit results in an annual cost of around
AUD250,000. These costs do not include the fees that will be applicable in 2010
for compliance with the Sarbanes Oxley Act Regulation 404.
The Board has considered that this cost is not acceptable while the company is
striving to contain its “cash burn” and establish market initiatives in India and
China.
The company has been actively seeking equity funds in international markets but
has experienced extreme difficulties because of the current world economic
downturn. Most institutional investors the company has approached have stated
that they are unwilling to invest in a company that has:
* No sales
* No liquidity in its stock
The Board has therefore taken this decision in the interests of cash flow
management and ultimate survival.
A number of administrative measures have already been implemented including the
resignation of the company’s CFO and those duties being undertaken by Mr Murray
Bailey. Mr Hutcheson is continuing in the role of Company Secretary on an hourly
rate (Part time). Mr Bailey has also agreed to reduce his annual consulting fees
by two thirds, effective immediately. Further, Mr Bailey has not received any
fees for the period since May 2008 and has personally funded the company since
October 2008.
Administration and accounting costs have been significantly reduced through
personnel moving from full time to part time contracts.
The Board advises that, in the interests of sound corporate governance, it will
continue to engage a PCAOB registered auditor in Australia to undertake an annual
Audit of the EESTech Inc Group and the company will prepare an annual Report for
engagement is expected to be less than 20% of the current costs. The Company
believes that this will ensure that with an external audit, moving forward, that
the accounts should provide a transparent indication of the company’s financial
progress.
The Board considers that this action will enable it to step out of the market,
with its inherent pricing pressures, and assist it to build a viable business,
based upon a sound business model.
The Board strategy is to return to the NASDAQ when it has achieved sales and
strong cash flow. This will ensure that the pricing at “listing” will reflect
the fundamental value in the company. This will also provide a flow on effect to
current stockholders.
The Board confirms that the company has no external secured or unsecured term
debt and consequently its primary asset, being its Patents and other intellectual
property remains unencumbered.
Mr Bailey said: “The Board is cognisant of the strong support that has been
provided by stockholders over a number of years. The Board thanks all
stockholders for this on-going support and advises that it will continue to
strive to add value back into the business and consequential positive effect on
the stock.”
Murray Bailey
Chairman
February 17, 2009
Forward Looking Statement:
This stockholders press release includes statements that may constitute
‘forward-looking’ statements. The statements can generally be identified by
phrases such as EESTech, Inc or its management ‘believes’ ‘forecasts’,
‘estimates’ or other words or phrases of similar import. These statements are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
Similarly, such statements herein that describe the Company’s business strategy,
outlook, objectives, plans, intentions or goals are forward-looking statements.
Forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from forward-looking statements.
Factors which would cause or contribute to such differences include, but are not
limited to our ability to recruit and retain key personnel, the availability of
funding for future operating requirements, our ability to protect our
intellectual property, our ability to secure contracts for the installation of
our products and our ability to develop and operate such projects successfully.
We urge you to carefully consider these factors and the information detailing
other factors (which could cause actual results to differ materially). The
forward-looking statements are based on current expectations and neither the
Company nor its management assumes any obligation to update these statements.
For further information on EESTECH or its products please visit the company’s
***
Released for EESTECH Inc. by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call:
Dennis Rutzou or Joanna Gitsham on +61 2 9413 4244.
SOURCE: EESTECH Inc.
__________________________________________________________________________________________
NEWS 
