COMMACK, N.Y., Feb. 20, 2008 (PRIME NEWSWIRE) -- Bruce Newman, Chief Executive Officer of Protocall Technologies Incorporated (OTCBB:PCLI), commented on the recent unusual trading activity in the company's stock.
"Our fundamental business and future prospects have not changed in any way from last week," Mr. Newman said. "We believe the recent high trading volume and decline in our share price was the result of large volume sales by institutional holders of Protocall convertible notes. These notes, which we utilize for short-term working capital, are periodically converted by holders into shares and then sold in the open market based on factors that we believe are often completely unrelated to our business."
Mr. Newman added, "The convertible notes include monthly conversion and share ownership restrictions to protect Protocall, but can still result in creating more shares than the market can immediately absorb. Currently, we have approximately $2.9 million of outstanding convertible notes, as more fully described in our most recent Form 10-QSB quarterly financial report on file with the SEC. We are acutely aware of the long term negative impact convertible debt financing can have on share value and are aggressively pursuing a structure that would reduce the debt by way of cash payments, which we believe will permit share value to grow in parallel with the proliferation of our DVD On-Demand service."
"Our business, partnerships and market momentum remain exceptionally strong," continued Mr. Newman. "Recent news regarding acceptance of the Sony Blu-ray DVD format by major retailers offers significant new business opportunities that we are already pursuing with our partners. We remain quite confident that the magnitude of our business will become more apparent in the near term as major retailers and studios begin a profound shift to on-demand production of movies and other entertainment products."
About TitleMatch Entertainment
A division of Protocall Technologies Incorporated (OTCBB:PCLI), TitleMatch Entertainment Group is the innovator of on-demand content distribution. Its flagship TitleMatch DVD On-Demand(tm) service allows retailers to burn brand-name CD and DVD products at their stores and website distribution centers. The company's proprietary systems enable retailers to reduce their reliance on costly physical inventory, expand their selection of products, eliminate shrinkage and out-of-stock situations, speed time to market for new products and improve their operating margins with minimal space requirements. Visit www.TitleMatch.com for more information.
This news release along with other investor information about Protocall Technologies is available at http://www.agoracom.com/IR/Protocall. To receive future news releases or request further information about Protocall Technologies, please email PCLI@agoracom.com.
The information contained in this news release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in these statements. Forward-looking statements regarding the timing of developing, testing and releasing existing and new products, of marketing and selling them, of deriving revenues and profits from them, as well as the effects of those revenues and profits on the company's margins and financial position, are uncertain because many of the factors affecting the timing of those items are beyond the company's control.