TEL AVIV, Israel, June 22, 2010 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT) today announced that it has received a Nasdaq Staff Deficiency Letter indicating that, according to its first quarter results, it is not in compliance with the Nasdaq Capital Market's $2,500,000 minimum stockholders' equity requirement. In parallel, Nasdaq's Staff gave the Company 45 days to demonstrate a plan for returning to compliance, and thereby assuring continuous listing.
In anticipation of such a notification, on May 24th the Company announced that its principal shareholder, STINS COMAN Inc., intended to carry out a private Share Purchase transaction undertaken, among other reasons, to increase its stockholders' equity. In this transaction, completed on June 9, 2010, STINS COMAN converted outstanding debt and accrued interest totaling approximately $1.5 million that it had previously loaned to the Company into 615,485 of the Company's ordinary shares. This increased the Company's stockholders' equity to a level of approximately $3.6 million, which is well in excess of the $2,500,000 required for listing on the Nasdaq Capital Market.
The Company intends to follow Nasdaq's procedures for presenting these facts within 45 days, and expects thereby to receive formal approval of continued compliance and listing.
About RiT Technologies
RiT is a leading provider of intelligent solutions for infrastructure management, asset management, environment and security, and network utilization. RiT Enterprise solutions address datacenters, communication rooms and workspace environments, ensuring maximum utilization, reliability, decreased downtime, physical security, automated deployment, asset tracking, and troubleshooting. RiT Environment and Security solutions enable companies to effectively control their datacenters, communications rooms and remote physical sites and facilities in real-time, comprehensively and accurately. RiT Carrier solutions provide carriers with the full array of network mapping, testing and bandwidth qualification capabilities needed for access network installation and service provisioning. RiT's field-tested solutions are delivering value in thousands of installations for top-tier enterprises and operators throughout the world.
For more information, please visit our website: http://www.rittech.com
Safe Harbor Statement
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate", "forecast", "target", "could" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For example, when we discuss a field trial which could lead to a multi-million dollar Carrier deal, we are using a forward looking statement. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described under the heading "Risk Factors" in our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented in subsequent reports filed with the SEC. These factors include, but are not limited to, the following: our ability to raise additional financing, if required; the continued development of market trends in directions that benefit our sales; our ability to maintain and grow our revenues; our dependence upon independent distributors, representatives and strategic partners; our ability to develop new products and enhance our existing products; the availability of third-party components used in our products; the economic condition of our customers; the impact of government regulation; and the economic and political situation in Israel. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
COMPANY CONTACT: Eran Ayzik CFO +972-3-766-4249 firstname.lastname@example.org
SOURCE RiT Technologies Ltd