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SEC ACTS ON SONEX OFFER OF SETTLEMENT AND REVOKES STOCK REGISTRATION
ANNAPOLIS, MARYLAND, July 16, 2007 – On July 13, 2007, the Securities and Exchange Commission (“SEC”) issued its order revoking the registration of the common stock of Sonex Research, Inc. (“Sonex” or the “Company”). As a result, the Company’s stock, which had traded in the over-the-counter market and was quoted on the Pink Sheets Electronic Quotation Service under the symbol “SONX”, will no longer trade publicly. As previously reported, Sonex had become delinquent in its annual and quarterly SEC reporting requirements primarily as a result of the effects of a failed restructuring in 2004. In January 2007 the SEC notified Sonex that the registration of its stock would be subject to revocation if all required reports were not filed within 15 days. In February 2007 the Company submitted an Offer of Settlement to the SEC in anticipation of the proceedings that could be instituted against Sonex by the SEC. The Company agreed to enter into a Consent Order with the SEC pursuant to which the registration of its stock would be revoked. The SEC did not issue its order until last week. The SEC order can be accessed via the following link http://www.sec.gov/litigation/admin/2007/34-56061.pdf. Stockholders will be able to transfer or sell their shares only in exempt transactions that are in compliance with the United States and applicable state securities laws. For example, shareholders may be able to sell or transfer their shares as long as the shareholders consult with their own legal counsel and comply with the requirements of Rule 144 and other applicable sections of the Securities Act of 1933. Sonex intends to continue to report on all material events by posting such information on its website at www.sonexresearch.com. Should the Company be in a position in the future to have its securities once again registered, it can do so by filing the appropriate form of registration statement with the SEC. While there is considerable expense associated with a registration statement, including the requirement for audited financial statements for the previous three years, Sonex would not also have to incur the costs of filing all previously delinquent SEC reports. The revocation of SEC registration is not expected to have any immediate adverse effect on the operations of the Company. Management is assessing the future needs of the Company and is working to develop an appropriate strategy for moving forward, including how best to maximize shareholder value through, for example, a strategic corporate transaction of some form or through future public trading of the stock.
Contact: George E. Ponticas, CFO, Sonex Research, Inc., tel: 410-266-5556, email: george.ponticas@sonex-na.com, website: www.sonexresearch.com.
About Sonex Sonex Research, Inc., a leader in the field of combustion technology, is developing its patented Sonex Combustion System (SCS) piston-based technology for in-cylinder control of ignition and combustion, designed to increase fuel mileage and reduce emissions of internal combustion engines. Sonex plans to complete development, commercialize and market its Sonex Controlled Auto Ignition (SCAI) combustion process to the automotive industry to improve fuel efficiency of gasoline powered vehicles. Other SCS designs are being used to convert gasoline engines of various sizes to operate on safer, diesel-type “heavy fuels” for use in military and commercial applications requiring light weight and safe handling and storage of fuel, such as in UAVs (unmanned aerial vehicles)
CAUTION REGARDING FORWARD‑LOOKING STATEMENTS “Forward‑looking” statements contained in this report, as well as all publicly disseminated material about the Company, are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Act. Such statements are based on current expectations, estimates, projections and assumptions by management with respect to matters such as commercial acceptance of the SCS technology, the impact of competition, and the Company's financial condition or results of operations. Readers are cautioned that such statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those expressed in any such forward‑looking statements.
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