PHOENIX, April 18, 2012 /PRNewswire/ -- On September 30, 2010, InnSuites Hospitality Trust ("The Trust"), (NYSE Amex: IHT) received a letter from the NYSE Amex LLC (the "NYSE Amex") informing the Trust that the staff of the NYSE Amex's Corporate Compliance Department had determined that the Trust was not in compliance with Section 1003(a)(ii) of the NYSE Amex Company Guide due to the Trust having stockholders' equity of less than $4.0 million and losses from continuing operations in three of its four most recent fiscal years.
The NYSE Amex's letter informed the Trust that in order to maintain its listing, it was required to submit a plan of compliance by November 1, 2010 addressing how it intended to regain compliance with the NYSE Amex's continued listing standards within a maximum of 18 months. The NYSE Amex's letter provided that if the plan submitted by the Trust were accepted by the NYSE Amex, the Trust would likely be able to continue its listing during the 18-month plan period, during which time it would be subject to periodic review to determine whether it was making progress consistent with the Trust's plan.
The Trust submitted its plan on November 1, 2010. The plan included improved hotel operating profits as the economy and hospitality industry continue to recover, the sale of membership of a portion of interests in the Albuquerque entity above carrying value and the potential sale of a portion of membership or partnership interests in other hotel properties owned by the Trust and Partnership all above carrying value.
The NYSE Amex's staff monitored the Trust's progress during the eighteen-month plan period which ended on March 30, 2012. The Trust received communication from the NYSE Amex on February 13, 2012 requesting draft financials for the fiscal year ended January 31, 2012 and an additional request for preliminary financials for the period ended February 29, 2012. The February 29, 2012 preliminary financials indicated that The Trust is now in compliance with Section 1003(a)(ii) of the NYSE Amex Company Guide with total equity of approximately $4.5 million which is above the required $4.0 million.
Based on the successful increase in equity and NYSE Amex communications with the Trust, the Trust expects to receive a letter from NYSE Amex stating that the Trust has regained compliance with the NYSE Amex Company Guide.
With the exception of historical information, the matters discussed in this news may release include "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance due to numerous risks and uncertainties and are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained.
SOURCE InnSuites Hospitality Trust