TEMECULA, Calif., Nov. 19, 2004 (PRIMEZONE) -- S3 Investment Company (OTCBB:SEIH) today announced that it is taking immediate steps to de-list its common stock from trading on the Berlin and Frankfurt Stock Exchanges. The Company's shares were listed on these exchanges without the Company's prior knowledge, consent or authorization. S3 Investments has recently been made aware of an unauthorized listing of its common stock on these exchanges, and Company executives became suspicious that "naked short selling" was taking place in its stock. Naked shorting is possible due to the unregulated nature of some foreign exchanges.
The Company's Board of Directors will direct legal counsel to send a written demand to the Berlin and Frankfurt Stock Exchanges that they immediately stop trading in the Company's common stock by designating the Company's common stock as "NA" on the next trading day while concurrently proceeding without delay to completely de-list the Company's common stock. A de-listing on these exchanges would result in no changes to the common stock trade on the OTCBB in the United States.
In June of 2004, U.S. regulators visited the Berlin stock exchange to discuss the plight of U.S. companies that are surprised to find themselves listed on the BBSE. Many of these firms have since asked German exchange to remove their listings, saying the trading there has made their share prices more volatile.
"It is the fiduciary responsibility of management to protect shareholder value, and in this regard, we plan to ensure that the Company's equity is traded only where necessary regulatory protections and assurances are in place," commented Company CEO and Chairman Chris Bickel.
Company Profile
S3 Investment Company, Inc. (http://www.s3i.us) is a Business Development Company regulated by the Investment Company Act of 1940. Its first operating subsidiary, Securesoft Systems, Inc. (http://www.securesoftsystems.com) was acquired in April 2003 and is a leader in compliance and risk management software, services and Internet technologies for regulated industries. S3 Investments has also acquired 100% of Redwood Capital to participate in the fast-growing investment banking market in China. The Company anticipates acquiring additional companies and is focused on assembling a portfolio of investments that will provide value to its shareholders.
This release contains forward-looking statements which involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those presently anticipated. Such statements are based on currently available information which management has assessed but which is dynamic and subject to rapid change due to risks and uncertainties that affect our business, including, but not limited to, the impact of competitive products and pricing, limited visibility into future product demand, regulatory interpretation, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.