CLEVELAND, Sept. 12, 2003 (PRIMEZONE) -- Paragon Real Estate Equity and Investment Trust (AMEX:PRG) today announced that it received notice from the American Stock Exchange concerning the removal from listing and registration on the exchange of its Class A Cumulative Preferred Shares. This action does not affect the status of the company's Common Shares, which will continue to be listed on that exchange.
Earlier this year, Paragon offered preferred shareholders a one-time incentive to exchange preferred shares into common shares which expired June 30, 2003. Through that exchange offer, preferred shareholders exchanged 1,174,120 of the preferred shares, or nearly 81%, for 26,865,042 common shares. After the exchange offer was completed, the remaining preferred shares held by investors not affiliated with Paragon have an aggregate market value below $1 million and therefore no longer meet the minimum requirement for listing on the exchange, as set forth in Section 1202(b) of the exchange's Company Guide. Paragon was aware of this requirement, as disclosed in its proxy statement, and chose not to submit a plan or request a hearing to appeal the exchange's process. The exchange suspended trading of the preferred shares and will submit an application to the Securities and Exchange Commission to remove the preferred shares from listing and registration in accordance with Section 12 of the Securities Exchange Act of 1934. Preferred shareholders retain the right to convert each of their shares for 3.448 common shares. The preferred shares are now traded on the Over The Counter Market with the symbol "PRGYP".
Separately, Paragon's management team will present a strategic plan to its Board of Trustees for approval on October 28, 2003. Commenting on the strategic plan, James C. Mastandrea, Chairman and Chief Executive Officer of Paragon, said, "We are very excited about the plan, which includes raising funds to accomplish our goals. The plan will focus on a national acquisition program to acquire assets that we can add value for long term growth of the company for our shareholders."
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 the 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/A, 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.