Late filing of its annual 10K Report for the fiscal year ending December 31 has prompted Penthouse International's delisting from the OTC Bulletin Board, with the adult entertainment giant continuing to trade common stock on so-called over-the-counter pink sheets under PHSL, the company announced May 21.
"The new management of Penthouse is committed to full and accurate disclosure to our shareholders. It is imperative that we provide the most complete information possible on Form 10K and our other public reports, and we have elected to take measured, disciplined steps to this end," said executive vice president and director Claude Bertin, announcing the OTC delisting.
"Our shareholders will ultimately be the beneficiaries," he continued. "Our majority shareholder and our institutional investors have demonstrated their support for Penthouse this quarter by their substantial financial commitments. Through our reorganization our operations have been intensely scrutinized and we are grateful that the support for Penthouse continues to this day,"
Penthouse said they plan to file their 10K within the next seven to ten business days, when they will either apply to re-list on the OTC or request a waiver on an expedited basis for such a re-list application.
"Based on discussions with the compliance department of the OTCBB, Penthouse and its representatives believe," the company said in a formal announcement, "assuming it meets all other listing requirements and achieves compliance in the near future with all of its reporting obligations under the Securities Exchange Act of 1934, that the OTCBB review and relisting of the Penthouse common stock could be realized in as little as two to three business days from the submission of all applicable documentation."
Penthouse International said the 10K filing delay was caused by "a number of factors," including the company's recently changing their independent accountants, relocating corporate headquarters, and a number of "significant transactions" done in the first quarter, including and especially the buying of Internet Billing Company (iBill) and finishing a deal with some creditors and security holders of subsidiary General Media.
Penthouse also struck a deal earlier this month with Access LLC to provide content for third-generation mobile telephones in Europe, distributed over the T-Mobile Network which represents about 440 million mobile phone users, with Penthouse sharing in the gross on the venture.
General Media recently filed a second amended reorganization plan with federal bankruptcy court in Penthouse's bankruptcy reconstruction project. A confirmation hearing on the new amended plan is set in federal court for June 10, but could be moved to July. The plan hinges on General Media and debtors getting debt and equity financing at about $61 million.
