MEMPHIS, Tenn., Feb. 2, 2005 (PRIMEZONE) -- Limelight Media Group, Inc (OTCBB:LMMG) announced today that the company's stock is still listed on the NASDAQ SHO Threshold Limit List which lists publicly traded companies with unresolved short sale positions, known as "failed deliveries," in a company's stock. The company's stock has appeared on the SHO Threshold Limit List for the past two weeks and has acquired a designation that denotes a mandatory resolution of the failed delivery positions is required.
In January, a new Securities and Exchange Commission (SEC) regulation governing short-selling, known as Regulation SHO, took effect. The regulation aims at modernizing rules on short-selling and addresses failures to deliver stock by the settlement date. Under Regulation SHO, exchanges are required to provide daily lists of securities that have large amounts that had a failure to deliver which is commonly called "naked shorting." This required list is referred to as the threshold securities list. Under Regulation SHO, threshold securities are defined by two criteria: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days and, 2) these fails constitute 0.5% or more of outstanding shares. Exchanges began publishing daily threshold lists on January 10th this year
In practice, brokerage firms generally have to locate securities before accepting a short sale, a process known as "affirmative determination." Brokerage firms also have to borrow a security or be able to provide the stock certificate for delivery on demand by the settlement date, which is three days after the transaction. If a firm cannot deliver the securities by settlement, the trade is considered failed. Such failed trades are supposed to be rectified promptly, but the industry has not been diligent in rectifying these failed trades or open short positions. Regulation SHO is intended to enforce the settlement of failed trades by providing rules, guidelines and potential trading penalties. Information regarding the new regulation may be found on the NASDAQ site: http://www.nasdaqtrader.com/aspx/regsho.aspx.
"This regulation is an attempt by the SEC to address growing concerns in the marketplace regarding open short positions in publicly traded stock. Abuse of shorting practices is often detrimental to the financial health of a company and can be used to manipulate a stock in the equity markets. Limelight management believes that the company's public stock has been a victim of these shorting practices and wholeheartedly supports these new efforts to resolve open short positions. The company will continue to aggressively monitor these events and relay information to Limelight shareholders and the SEC on a timely basis," stated David V. Lott, President of Limelight Media Group, Inc.
Limelight Media Group, Inc. creates, manages and supports out-of-home digital advertising and promotional networks. The Company's digital media management system enables simultaneous delivery of video content to a variety of remote audiences in real time, allowing for immediate customization of messages through a centralized network operations center. The Company is developing an initiative to enhance its product offerings in digital media with traditional media sources and technology products.
This release includes projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although the management of Limelight believes that the expectations reflected in these forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations are disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.