Home > News > Prospective XTV Purchaser to Have Stock Delisted • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Prospective XTV Purchaser to Have Stock Delisted

Prospective XTV Purchaser to Have Stock Delisted
Get XBIZ News
Jan 17, 2005 3:30 PM PST    Text size: 
DEERFIELD BEACH, Fla. — Media holding company Interactive Brand Development, current holder of a non-binding letter of intent to acquire 99 percent equity in XTV, has received notice that the company’s common stock is going to be delisted from the American Stock Exchange, due in part to a series of insider trading transactions.

Formerly known as Care Concepts, IBD disclosed in recently filed SEC documents obtained by XBiz that AMEX told the company on Jan. 10 that it intends to begin the delisting process and the company had seven days to appeal the decision.

According to the SEC documents, AMEX officials voiced concern about IBD’s acquisition of 39.9 percent minority interest in Penthouse Media Group and the financing that needed to be obtained for that purchase, as well as the issuing of more than 20 percent of the company’s outstanding stock without shareholder approval.

AMEX officials also believe that the company may have engaged in operations contrary to the public interest by selectively disclosing non-public information, having insiders trade securities while in possession of that information and inaccurately reporting the amount of outstanding common stock in SEC filings.

The company is also financially impaired and reported a working capital deficit of $37,000, according to AMEX.

Interactive stated in a press release that it believes that the AMEX staff made conclusions based on incomplete or unclear information.

Interactive’s stock listing has been hanging in the balance since September, when the company first announced that it intended to purchase beleaguered payment processor iBill. At the time, AMEX temporarily restricted trading on the stock citing a variety of public interest concerns.

With the termination of the iBill acquisition at the beginning of December, though, Interactive said that it believed all of its stock listing issues had been resolved.

The company also said in December that the public interest concerns cited by AMEX were due to the company’s involvement with the adult industry.

“The American Stock Exchange objected to the closing of the iBill transaction and cited, among other factors, concerns that iBill may be inadvertently engaging in transactions with web merchants that offer pornographic materials on the Internet in violation of federal and state laws,” said Interactive at the time.

While that information was contrary to press releases filed with the SEC, which stated that the public interest concerns were due to not properly furnishing information related to the iBill acquisition, it appears now that the concerns addressed by AMEX actually had to do with insider stock sales made based on non-public information made in July.

Calls to Interactive spokespeople were not returned by deadline.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

LEGAL PERSPECTIVES

Dissecting an $11.9M Affiliate Marketing Judgment

The Federal Trade Commission scored another major win in early October when the 2nd U.S. Circuit Court of Appeals upheld a lower court ruling, requiring LeadClick Media LLC to pay an $11.9 million award. The... More »

Legal Protection for Amateur Shoots

Any adult industry professional who creates video content with actual first-time amateurs will come to an early knowledge that later performer regret is commonplace. Recognized performers who regularly... More »

Legal Options to Address Pirated Cam Performances

Many webcam performers have experienced a new trend in online piracy — the illegal recording and publication of live webcam performances. The “business model” is disturbingly simple:... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!