VERO BEACH, Fla., Sept. 10, 2002 (PRIMEZONE) -- Calton, Inc. (AMEX:CN) announced today that it was notified on September 9, 2002 that the American Stock Exchange had accepted a plan submitted by the Company to bring the Company into compliance with the Exchange's continued listing standards.
On July 26, 2002, the Company received notice from the American Stock Exchange indicating that the Company is below certain of the Exchange's continued listing standards due to the operating losses it has sustained in three out of four of its most recent fiscal years and a decline in shareholders' equity below $4,000,000, as set forth in Section 1003(a)(ii) of the AMEX Company Guide. The Company was afforded the opportunity to submit a plan of compliance to the Exchange and submitted the plan on August 22, 2002. On September 9, 2002, the Exchange notified the Company that it accepted the Company's plan of compliance and granted the Company an extension of time to regain compliance with the continued listing standards. The Company will be subject to periodic review by the Exchange Staff during the 18 month extension period which ends in January 2004. Failure to make progress consistent with the plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Company being delisted from the Exchange.
Anthony J. Caldarone, Chairman and Chief Executive Officer of the Company stated: "We are pleased that AMEX has determined that our plan reasonably demonstrates how we will achieve compliance with its continued listing standards by January 2004. The plan demonstrates prospective improvements in operations during the extension period. At this juncture, our primary focus is to continue the implementation of the customer loyalty and co-branded credit card program developed by our subsidiary, PrivilegeOne, LLC and to provide Internet business solutions and technology based consulting and staffing services through our other operating subsidiary, eCalton.com, Inc."
Certain information included in this release and Company filings (collectively, the "SEC filings") under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (as well as information communicated orally or in writing between the dates of such SEC filings) contains or may contain forward looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are matters relating to the indemnification provisions in connection with the Company's sale of Calton Homes, Inc., national and local economic conditions, the lack of an established operation history for the Company's current business activities, conditions and trends in the Internet and technology industries in general, the effect of governmental regulation on the Company and the risks described under the caption "Certain Risks" in the Company's Annual Report on Form 10-K for the fiscal year ended November 30, 2001.