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Company
Contact: Steven
B. Solomon, CEO 214.521.3443 Press
Contact: Dian Griesel, Ph.D. Investor
Relations Group 212.736.2650 CT HOLDINGS RELEASES UPDATE ON COMPANY STATUS AND POSSIBLE DELISTING FROM NASDAQ SMALLCAP MARKET DALLAS,
Texas - (December 27, 2000) - CT Holdings, Inc. (NASDAQ:CITN), today
announced that it has received notice dated December 15, 2000 from The
Nasdaq Stock Market that the Company's common stock has failed to maintain
a minimum bid price of $1.00 per share over the last 30 consecutive
trading days as required for continued listing on Nasdaq's SmallCap
Market. The Company was notified by Nasdaq that the Company has 90
calendar days, or until March 15, 2001, to regain compliance with
Nasdaq’s rules by having
the bid price of the Company's common stock equal at least $1.00 per share
for a minimum of 10 consecutive trading days. "We
remain optimistic about our holdings and their future prospects. Parago
continues to expand its business and technology, recording record revenues
and growing its client base. We believe that Parago's ability to raise
additional funds in the current environment is indicative of its strong
business model and management team. River Logic, offering leading edge
solutions, continues to be well–received by its clients," commented
Steven B. Solomon, President and Chief Executive Officer of CT Holdings. Mr.
Solomon continued, "While we were disappointed to receive the Nasdaq
notice regarding the possible delisting, we continue to take steps to
maximize shareholder value, and we are hopeful that we can maintain our
Nasdaq listing by complying with the listing requirements in the next
couple of months. We believe
that our holdings are not being fairly valued by the marketplace and that
prevailing market conditions coupled with year-end tax selling has
adversely impacted the market price of our common stock." Recent
highlights for CT Holdings' incubator projects include the following: ·
For
its quarter ended September 30, 2000, Parago reported record revenues of
approximately $5,600,000, a 137% increase over the 1999 third quarter and
a 40% sequential increase from the second quarter of 2000. Parago has also
increased the number of its clients to approximately 180 as of September
30, 2000, which include leading national retailers, manufacturers and
service providers, from approximately 160 clients at the end of the prior
quarter. ·
Also
in Q3 2000, Parago received an additional $15 million in venture capital
funds, through a sale of Series D Convertible Preferred Stock to two of
its existing venture capital investors. ·
Parago
currently has approximately 350 employees. Parago recently hired a new
Executive Vice President of Sales, Steve Blum. Previously, Steve was Vice
President, The Americas, for Mentor Graphics Corporation, an electronic
design automation software firm with approximately $560 million in annual
revenues, where he managed 250 sales and support personnel. ·
At
the end of Q3 2000, Parago rolled out its first upsell/cross-sell
technology application, which Parago has branded ValueRewards(SM).
ValueRewards is now part of Parago's regular product offering, and to date
Parago has signed four clients to the program. Parago expects to begin
seeing revenue from this exciting application in the near future.
·
In
addition to ValueRewards, in Q3 2000 Parago piloted its KnowledgeCenter(TM)
technology, a robust data warehousing application for analyzing
promotional effectiveness. Five of Parago's clients are currently testing
the application, and Parago will begin marketing this product later in Q4
2000. ·
In
November, Parago rolled out a new Parago web site (www.parago.com), which
Parago believes more effectively conveys the unique aspects of its
business model and incorporates a more appealing presentation. ·
Parago
is currently pursuing COPC certification for its operations and customer
service organizations (COPC is similar to Malcolm Baldridge's ISO 9000 but
designed specifically for Parago's type of business). Parago believes that
COPC certification is a hallmark of a world class operation and is a
competitive advantage for those who obtain it. ·
Parago
continues to talk with investment banks about Parago and the best timing
for a successful IPO. Parago intends to pursue an IPO when market
conditions permit. ·
In
July 2000, River Logic closed a $3 million private placement of shares of
its Series B preferred stock to a venture capital firm that specializes in
early stage technology firms that offer B2B Internet solutions that
provide strong value-oriented models for their prospective market-space. ·
In
addition, one of River Logic's resellers, Heads Up! Systems, LLC, and
Price Waterhouse Coopers, LLC entered into a strategic alliance offering
clients of process- and supply-chain modeling applications reliability in
the use of enterprise modeling tools. New software such as COR
Technology(C) by River Logic, provides business planners and managers with
the ability to identify profit improvement opportunities, design and
communicate supply chain and business process information, and to develop
model-based tactical and strategic plans. Recent
highlights for CT Holdings include the following: ·
CT
Holdings announced the appointment of Phil Romano, a leading serial
entrepreneur in the Restaurant and Technology Industries, to its Board of
Directors. ·
Two
of CT Holdings' directors acquired 2.5 million shares of CT Holdings
common stock in the quarter ended September 30, 2000. If
the Company is unable to demonstrate compliance with Nasdaq’s
price-related listing requirements on or before March 15, 2001, Nasdaq
will provide the Company with written notice that the Nasdaq has
determined to delist the Company's common stock.
At that time, the Company may request a review of the Nasdaq's
determination. About
CT Holdings CT
Holdings, Inc. (NASDAQ: CITN), is an incubator of early stage Internet
companies. (www.ct-holdings.com).
About
Parago Parago's
patent-pending technology platform and processes represent an innovative
approach designed to improve the promotional marketing industry.
Parago provides a range of Internet-based customer relationship
management products, PromoCenter, InfoCenter and KnowledgeCenter, that are
created to increase sales, reduce costs, enhance customer retention for
its clients, and improve loyalty. These products comprise Parago's
Continuous Customer InteractionSM model, which helps retailers,
manufacturers and service organizations reduce the cost of conducting
promotions and drive incremental revenue by cross-selling and upselling
new products and services. During
the relationship management process, Parago captures fresh, accurate, and
usable transaction and buyer demographic data that can be used by its
clients to improve their promotional marketing programs.
Parago, Inc. is a subsidiary of CT Holdings, Inc. (NASDAQ: CITN)
and maintains a web site at www.parago.com. About
River Logic River
Logic, Inc. develops and supports 3rd Generation Internet Network
Solutions customized for vertical market segments. Network Solutions
contain a suite of value-added applications, management tools, and
standard network components that connect domain experts and end-users to
premium expertise knowledge that allow organizations to optimally leverage
their intellectual assets to gain decisive competitive edge. River Logic
is headquartered at 800 Cummings Center, Suite 355W, Beverly, MA 01915 and
has just added an office in Atlanta, GA located at 100 Mansell Center
East, Suite 225, Roswell, GA 30076. More information is available at
www.riverlogic.com or via email at info@riverlogic.com, or at
(978)753-5029. For
more information on CT Holdings, its Internet subsidiaries, and its
Citadel Technology line of security software products, please visit our
Web site at http://www.ct-holdings.com. For information on purchasing
products, contact us directly by writing or calling: CT Holdings, 3811
Turtle Creek Blvd., Suite 770, Dallas, Texas 75219; phone: 214/520.9292;
fax: 214/520.9293. For media or investor relations contact: Shayne Payne
or Dian Griesel Ph.D. at The Investor Relations Group. 212/736.2650.
Forward-Looking
Statements: This news release contains forward-looking statements, which
involve risks and uncertainties. Accordingly, no assurances can be given
that the actual events and results will not be materially different that
the anticipated results described in the forward-looking statements. There
are a number of important factors that could cause actual results to
differ materially from those expressed in any forward-looking statement
made by us. These factors include our and our subsidiaries’ success in
integrating the business and operations of acquired companies and
interests; no assurances of an initial public offering based on market
conditions and suitable underwriters; availability of suitable incubator
companies; implementation of Internet strategies; the activities of new or
existing competitors; the ability to attract and retain employees and
strategic partners; application of state unclaimed property or escheat
laws; the availability of capital on terms acceptable to the Company; the
ability to maintain or regain compliance with Nasdaq listing criteria;
general economic conditions; and litigation costs. Investors are also
directed to consider other risks and uncertainties discussed in documents
we file with the Securities and Exchange Commission.
The
Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements, which may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. |