PHOENIX NETWORK TEMPORARILY CHANGES STOCK TRADING STATUS
PHOENIX NETWORK TEMPORARILY CHANGES
STOCK TRADING STATUS
SAN FRANCISCO, Nov. 21 /PRNewswire/ -- Phoenix Network, Inc. (NASDAQ: PHXNC) has been notified by NASDAQ that the company's stock trading status has been temporarily classified as a conditional listing due to a minimum capital shortfall of $140,000 below the NASDAQ required $375,000 of shareholders' equity. Phoenix Network's stock is now trading on NASDAQ under the temporary symbol PHXNC.
Thomas H. Bell, chairman and chief executive officer of Phoenix Network, said the company is currently in the process of completing a $1.5 million private placement, at which time regular trading on NASDAQ would resume under the old symbol PHXN. He anticipates the financing to be completed by Dec. 31, 1991.
"As is typical of a growth company, we made a large investment in building the infrastructure to support rapid growth which has increased revenues from $1.9 million in the first quarter 1990 to $4.7 million in the first quarter 1991. We expect to see continued rapid growth from our joint marketing effort with Office Depot Stores, the church affinity program, and our Phoenix Network value- added services," said Bell. "Additionally, the company has substantially improved order processing intervals by utilizing a new service offered by AT&T, called Distributed Network Service (DNS). We have completed invoicing two of the three months in the second quarter, and indications are pointing towards a substantial financial improvement. This, combined with the completion of the private placement, should more than bring us into full compliance with NASDAQ's capital requirements."
Phoenix Network is a recognized leader in the resale of long distance telephone services to small and mid-size businesses and residential accounts. Phoenix negotiates optimal cost-effective telephone services directly with the carriers and rebills these services at rates typically below those a small company could attain on its own. It also provides billing and information reports tailored to specific customer needs.
/CONTACT: Thomas H. Bell, chairman and CEO of Phoenix Network, 415-981-3000; or Craig A. Parsons or Elizabeth Gard of Rifkind Pondel & Parsons, 310-207-9300, for Phoenix Network/
(PHXNC) CO: Phoenix Network Inc. ST: California IN: TLS SU: CH -- LA031 -- 6044 11/21/91 16:10 EST