Butler National Corporation Requests Hearing on NASDAQ's Notice of Possible De-Listing; Stock to Continue Listing Pending Hearing.OLATHE, Kan.--(BUSINESS WIRE)--Aug. 5, 1998-- Butler National Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on - BUKS) requested that the NASDAQ hold a hearing on its announced intent to de-list the Company's common stock from the NASDAQ Small Cap Market. The Company previously had announced NASDAQ's May 6, 1998, notice of its intent to de-list the Company's common stock if the stock did not have a closing bid price of $1.00 or greater for ten or more consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. during the three-month period from May 7, 1998, through August 6, 1998. Although the Company's common stock did not meet the $1.00 bid requirement during the past 90-day period, the Company's stock will remain listed with the NASDAQ Small Cap Market pending the outcome of the hearing that the Company has requested. As the Company announced in a July 7, 1998, press release concerning conversions of certain convertible securities previously issued by the Company to certain offshore investors, the Company believes that the conversion and tradingactivities of the owners of these convertible securities have artificially depressed the price of the Company's stock. The Company believes that the existence of these conversion and trading activities is grounds for the NASDAQ to rescind To declare a contract void—of no legal force or binding effect—from its inception and thereby restore the parties to the positions they would have occupied had no contract ever been made. rescind v. or postpone its plan to de-list the Company's stock, pending a complete evaluation of the impact of the conversion and trading activities on the stock price and the implementation of appropriate remedial measures. As recently announced by the Company in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. report, two of the investors in the convertible securities have filed suit against the Company in Delaware state court, and the Company believes that the resolution of this litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. will prevent any further trading activities that could continue to depress de·press v. 1. To lower in spirits; deject. 2. To cause to drop or sink; lower. 3. To press down. 4. To lessen the activity or force of something. the stock price and will allow normal market dynamics to govern the valuation of the stock; however, there can be no guarantee that the litigation will be resolved favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the Company. Forward-Looking Information: The information set forth above may include "forward-looking" information as outlined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Cautionary Statements, filed by the Company as Exhibit 99 to the Company's Annual Report on Form 10-K, are incorporated herein by reference. You are specifically referred to such Cautionary Statements for a discussion of factors which could affect the Company's operations and forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained herein. Our business: Butler National Corporation operates in the Aerospace and Services business segments. The Services segment includes electronic monitoring of wastewater pumping stations, temporary employee services, Indian gaming services and administrative management services. Aerospace includes the manufacture of airborne electronic switching equipment for Boeing-McDonnell Douglas and structural modification of business aircraft.
CONTACT: Butler National Corp., Olathe
William A. Griffith, Investor Relations, 913/780-9595
Fax: 913/780-5088
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