CLEVELAND, Ohio, Sept. 23, 2005 (PRIMEZONE) -- Paragon Real Estate Equity and Investment Trust (AMEX:PRG) received a letter on September 20, 2005 from the American Stock Exchange notifying the company that it is not in compliance with continued listing requirements of Section 1003(a)(iii) of the exchange's Company Guide due to shareholders' equity of less than $6.0 million and losses from continuing operations and net losses in its five most recent years. In addition the letter noted that the company's stock price has been below $0.24 for the last 12 months and in accordance with Section 1003(f)(v) of the exchange's Company Guide the exchange recommended a reverse stock split.
As previously disclosed in December 2004 and February 2005, Paragon was advised by the American Stock Exchange that the company was not in compliance with other shareholders' equity requirements of the exchange. Since submitting its compliance plan to the exchange, Paragon has been exploring various ways to maintain its listing, including identifying potential acquisitions and performing due diligence. In addition, at its 2005 annual meeting of shareholders, Paragon obtained authorization for the board of trustees to effect a reverse split of its shares when appropriate. Paragon remains committed to bringing the company into compliance with the exchange's listing standards. If Paragon is not in compliance with the listing standards at the end of its compliance plan period, or does not make progress consistent with the compliance plan, the company will be subject to delisting proceedings. In the interim, Paragon's common shares will continue to trade on the American Stock Exchange.
Forward-Looking Statements
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Paragon Real Estate Equity and Investment Trust believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that it will be able to maintain its American Stock Exchange listing or that its planned implementation of a national real estate acquisition, development and re-development strategy will be completed in whole or in part. Factors that could cause actual results to differ materially from Paragon's expectations include changes in local or national economic or real estate conditions, the ability to meet competition, loss of existing key personnel, ability to hire and retain future personnel and other risks detailed from time to time in Paragon's SEC reports and filings, including its annual report on Form 10-K, quarterly reports on Form 10-Q and periodic reports on Form 8-K. Paragon assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.