Stock Transfer Error Results in Halt of Trading for Fidelity Holdings' Securities
10 January 2000
Stock Transfer Error Results in Halt of Trading for Fidelity Holdings' Securities
NEW YORK--Jan. 7, 2000--Fidelity Holdings, Inc. today announced a halt order on trading of the Company's securities on Nasdaq. Due to an inadvertent mechanical error on the part of the independent transfer agent, Olde Monmouth Stock Transfer Company, the shares issued in connection with Fidelity Holdings' recent stock split had been improperly calculated and issued. Due to the potential confusion on the part of investors and in the marketplace, the Company, in conjunction with Nasdaq Stockwatch, has determined that a stop trading order is proper until the error can be corrected. Accordingly, the Company's securities have temporarily ceased trading on the Nasdaq system. The Company will obtain a new CUSIP number and issue new certificates in a different color for the aggregate amount of shares held by each individual shareholder. Shareholders will receive their respective certificates by mail along with directions for return of all previously issued share certificates. Accordingly, it is expected that trading will resume no later than Thursday, January 13, 2000. The Company will issue a press release confirming the mailing of the new certificates and the estimated time for trading to resume.Bruce Bendell, Chairman of Fidelity Holdings, said: "We are confident that this regrettable error can be corrected quickly and we may resume our Company's progress. After consultation with Nasdaq, we have decided that this action was necessary to correct the problem caused by the outside transfer agent. We thank our shareholders for their support and patience during this period."
Fidelity Holdings has been a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates two divisions -- Automotive and Technology. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan Area. The Technology Division operates through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its plastics subsidiary. Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities. Accordingly, all such non-automotive activities have been classified as discontinued operations in its financial statements.
For additional information, visit our website at www.fdhg.com, www.majorautomotive.com and www.majorworld.com.
The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's Annual Report on Form 10-KSB and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.