ANAHEIM, Calif., Jan. 20, 2005 (PRIMEZONE) -- Gateway International Holdings, Inc. (Pink Sheets:GWYI) announced today that it has taken steps to prepare the filings necessary to bring itself back into compliance with its public reporting obligations under the Securities Exchange Act of 1934 ("1934 Act"). It has engaged the services of Kabani & Co. to complete the audits of its consolidated group of companies.
Under the 1934 Act, Gateway is responsible for, among other things, making periodic annual and quarterly reports to the Securities and Exchange Commission for public review. Gateway ceased making such reports in 2003, due to its inability to obtain reliable financial information regarding one of its previous subsidiaries, Bechler Cams, Inc. following its acquisition. That transaction has since been rescinded as the result of litigation between the parties. At the time, Gateway believed that it would not be able to complete the requisite consolidated financial statements to make its required 1934 Act filings with the SEC and, on that basis, it ceased making them. As a result, the company was de-listed to the Pink Sheets and it also had consented to the deregistration of its shares by the SEC.
Recently, Gateway has determined that there may be a way, as an accounting matter, for it to complete and file the required financial information notwithstanding its earlier problems with Bechler Cams at that time. The company has determined to attempt to make those filings and become in compliance as a publicly-reporting corporation once again. On that basis, it has withdrawn its consent to deregistration from the SEC.
While there can be no assurance that the auditor engaged to complete the two years of missing audits will be able to provide an audit opinion which will be fully-acceptable to the SEC, when the filings might be made by the Company if at all, or that the SEC would still not seek the deregistration of the company's shares or other action against the company as a result of its failure to file its periodic reports under the 1934 Act, Gateway has taken the steps outlined above because it feels that it is the best opportunity to preserve the value of the company for the benefit of its public shareholders.
Investors should note that Gateway has further determined that, due to the lack of full information regarding the company and its financial condition available to shareholders until such time as its 1934 Act reports can be completed and filed with the SEC, from this point forward it will not be making any statements as to material events or conditions which may occur or exist involving Gateway.
Any statements made in this press release which are not historical facts contain certain forward-looking statements, as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievement expressed or implied by such forward looking statements. In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "intend," "expects," "plan," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements.