BOCA RATON, Fla., March 1, 2011 (GLOBE NEWSWIRE) -- Juniper Group, Inc. (OTCQB:JUNP) has received several inquiries from shareholders concerning the status of the litigation involving a related group of companies that will be referred to as the NIR Group. The main concern expressed by these holders is whether NIR Group can convert its convertible notes into shares that can be sold into the open market. Juniper believes that the answer to this inquiry is no. Specifically, we have been advised that NIR Group cannot convert any of its notes into shares of common stock of Juniper while the litigation is pending.
Although court schedules are difficult to predict, and the outcome of this action is not assured, we believe that it will be a long time before the case is resolved. As such, we understand that NIR Group will not be able to sell any Juniper stock into the open market for the foreseeable future. Furthermore, numerous reports in the financial press confirm that NIR is being investigated by the Securities and Exchange Commission and the United States Attorney's Office. In the event that any kind of government action is taken against NIR, it is possible that all current claims that NIR may have against Juniper could be turned over to a Court-appointed receiver, which could also delay and hinder NIR's efforts to prosecute any claims against Juniper.
The litigation by NIR occurred in part as a result of Juniper's refusal to convert more than 1% of Juniper's total issued and outstanding shares at a time to each of several NIR Group companies. Based upon advice of counsel, Juniper has taken the position that releasing 4.9% of its total issued and outstanding common shares to multiple companies controlled by Corey Ribotsky at the same time and in succession would be a potential illegal distribution of shares based upon NIR's potential status as an affiliate of Juniper Group.
In addition, Juniper alleges that NIR has violated its financing agreements with Juniper and unlawful previous short selling has, in turn, damaged Juniper's market and its shareholders, which give rise to substantial defenses and counterclaims in favor of Juniper against NIR Group.
Vlado P. Hreljanovic, Chairman and CEO, stated, "We intend to stand firm against any further conversions by the NIR Group based on their violations of the financing agreements and potential violations of securities regulations."
About Juniper Group, Inc.
Juniper Group, Inc. (OTCQB:JUNP) conducts wireless infrastructure services through its operating subsidiaries which primarily focus their activities in the Eastern and Central United States. Our intention is to be able to support the increased demand in the deployment of wireless infrastructure services with leading wireless telecommunication companies in providing them with maintenance and upgrading of wireless telecommunication network sites, site acquisitions, site surveys, co-location facilitation, tower construction and antenna installation to tower system integration, hardware and software installations.
Safe Harbor
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the expected growth trend. All forward-looking statements in this press release are made as of the date of this press release, and Juniper assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements and include the risk that our growth will not continue as anticipated and the factors discussed in the Business and Management's Discussion and Analysis sections in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings are available at http://www.sec.gov/blocked::http://www.sec.gov/">www.sec.gov.