OTC and SmallCap Industry News Sample

Jun 03, 2002 02:51:19

LIQUIDITY ALERT: Netplex Group Has $9.1 Mln Working Capital Deficit

FREDERICK, Maryland (SunStream News) -- The Netplex Group Inc., which provides consulting, Web site design, application development, systems design and integration and network management and security services, reports $12.1 million of current liabilities and $3 million of current assets, or a working capital deficit of $9.1 million, for the three months ended March 31, regulatory documents show. The Reston, Virginia-based company says it has cash and cash equivalents of $600,000. It has incurred significant losses from operations and has used cash in operations in each of the past five years. In addition, the company has a stockholders' deficit of about $6.8 million. That, along with a working capital deficit, raised substantial doubt about its ability to continue as a going concern. In late 2001, the company began exploring alternatives to raising additional capital and restructuring its obligations and capital structure. Among the alternatives considered included a rights offering aimed at raising capital through the issuance of additional shares of its Netplex Systems subsidiary. The company has entered into non-binding letter of intent to sell the net assets totaling about $2 million of its retail consulting business for about $6 million (later reduced to $4.3 million) in cash.

ss/bal

Source: Liquidity Alert

Publication Date: 2002-06-02

 

NWS:	ACC
	TNM
	ERN
	FNC
	OTC

COY:	NTPL

IND:	HRD
	NET
	STW
	CPR
	ECM
	ITE
	MLM
	OTC

GEO:	n-us-va

 

Back to Industry News Samples List