Capital Alliance Income Trust Ltd. Defers Decision on Dividends.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Capital Alliance Income Trust Ltd. ("CAIT CAIT Center for the Application of Information Technologies (established at Western Illinois University) CAIT CDMA Air Interface Tester CAIT Computer-Aided Inspection and Test CAIT Computer-Aided Instructional Trainers ") (AMEX AMEX See: American Stock Exchange :CAA Caa See CCC. ) a residential mortgage REIT Mortgage REIT An REIT that invests in loans secured by real estate which derive income from mortgage interest and fees. mortgage REIT announced that the Board of Directors has deferred a decision on the August Preferred Share and quarterly Common Share dividends until the second quarter 10-QSB is approved for filing with the Securities and Exchange Commission ("SEC"). In mid-August CAIT's Board of Directors will meet to review the second quarter's 10-QSB. Last month CAIT announced the appointment of new auditors. CAIT's management expects to file a 12-b-25 with the SEC, allowing five additional days to file the second quarter's 10-QSB, in order to provide the new auditors with sufficient time to review the quarterly filing. The second quarter filing is scheduled to occur on or before August 22, 2005. CAIT again reiterated that the current interest rate environment, increased competition and regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. are negatively impacting the REIT's operating performance. Since last summer, average margins have declined, due to a flatter yield curve and increased competition. Also, the regulatory costs in time, energy and dollars of the post Sarbanes-Oxley environment have been disproportionately costly for a small company. CAIT, a specialty residential lender, invests in conforming and high-yielding, non-conforming residential mortgage loans on one-to-four-unit-residential properties located primarily in California and other western states. Only residential loans with a combined loan-to-value of 75% or less are retained in CAIT's portfolio of mortgage investments. This document may contain "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. " (within the meaning of 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) that inherently involve risks and uncertainties. CAIT's actual results and liquidity can differ materially from those anticipated in these forward-looking statements because of changes in the level and composition of CAIT's investments and unforeseen factors. As discussed in CAIT's filings with the Securities and Exchange Commission, these factors may include, but are not limited to, changes in general economic conditions, the availability of suitable investments, fluctuations in and market expectations for fluctuations in interest rates and levels of mortgage prepayments, deterioration in credit quality and ratings, the effectiveness of risk management strategies, the impact of leverage, the liquidity of secondary markets and credit markets, increases in costs and other general competitive factors. |
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