JACKSONVILLE, Fla., April 4, 2007 (PRIME NEWSWIRE) -- Phlo Corporation (Pink Sheets:PHLC) ("Phlo") was successful in its appeal to the full SEC Commission in eliminating all fines against Phlo and its President, James B. Hovis. In a decision issued last Friday, March 30, 2007, the full Commission of the U.S. Securities and Exchange Commission ruled that the SEC, in the case at hand, did not have the authority to impose fines on Phlo or its President for the charges of late quarterly and annual filings, which are now completely current, and that circumstances did not justify fines against Phlo for violations of transfer agent regulations.
SEC Administrative Law Judge James T. Kelly issued an initial opinion last February, 2006, imposing civil fines of $100,000 against Phlo and $25,000 against James B. Hovis. Phlo appealed Judge Kelly's decision to the full Commission of the SEC, arguing, among other things, that the fine against Phlo was unjustified and that there was no authority in this case to impose a fine against Mr. Hovis. The full Commission of the SEC agreed and vacated the fines against Phlo and Mr. Hovis.
Other sanctions imposed by Judge Kelly remain in place, including a "cease and desist" order requiring Phlo to maintain its current filing status and a bar against Phlo acting as its own transfer agent in the future. Phlo announced in January that it was moving the transfer agent function to an independent, outside firm. Phlo has engaged a new transfer agent and is working with the new transfer agent to put Phlo's transfer records in electronic form.
The Commission increased a fine against Executive Vice President Anne Hovis from $50,000 to $100,000. An appeal of the fines against Anne Hovis to a U.S Court of Appeals is likely in view of the Company's assessment of the likelihood of success of such an appeal. The appeal to the full Commission resulted in a net decrease of $75,000 in the aggregate fines assessed against the parties.
Phlo is a biotechnology company and a manufacturer and marketer of products (primarily liquids) containing patented and patent-pending biotechnologies. Phlo is focusing its technology generation and acquisition efforts on those technologies related to enhancing cognition and personal performance, reducing the effects of aging, and preventing or ameliorating cancer.
Certain statements made herein that are not historical constitute "forward-looking" statements within the meaning of the Private Litigation Reform Act of 1995 and may contain words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify such forward-looking statements. Such statements are based on a number of assumptions and on information and estimates supplied to Phlo Corporation by sources currently available to it. Such assumptions and estimates are subject to uncertainties, contingencies, and other factors, many of which are beyond Phlo Corporation's control. Actual results may differ materially from the statements set forth above.