EAST RUTHERFORD, N.J.–(BUSINESS WIRE)–Tel-Instrument Electronics Corp. (“Tel”, “TIC” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions was notified by the OTC Markets about certain promotional activities relating to the Company’s common stock traded on the OCTQB market. The Company did not initiate any request for this promotion, which touts the Company and encourages investors to purchase shares. We are required to issue this press release as a requirement of OTC Markets.
We became aware of the promotional activity on October 28, 2020, the day the promotional material was released. On October 27, 2020, the day prior to the release of the promotional material, the Company’s stock went from a closing price of $3.70 on October 26, 2020 to a closing price of $4.65, a 25.7% increase, on volume of only 5,500 shares. On October 28, 2020, the date of the promotional activity, the closing price of the Company’s stock price declined 16.1% to $3.90 on volume of 38,700 shares.
The Company had made no announcements during this timeframe. The Company confirms that none of its officers, directors management or controlling shareholders (defined as shareholders owning 10% or more of the Company’s securities) were directly or indirectly involved in any way (including payment of a third-party) with the creation, distribution or payment of promotional materials related to the Company, and that the Company has no knowledge regarding the source of this promotional activity. The Company had engaged an investor relations firm, IMS, within the last twelve months, but this firm did not engage in any promotional activities.
The statements regarding the Company that were made in the unsolicited promotional materials, in our opinion, were not materially false and/or misleading.
To the best of our knowledge, the Company confirms that none of the Company’s officers, directors or its controlling shareholders sold or purchased shares of common stock of the Company within the last 90 days.
In a prior year, the Company had issued preferred stock allowing conversion to equity securities at a price constituting a discount to the current market price at the time of issuance. Such issuance has been fully disclosed in Current Reports on Form 8-K, Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
The Company is committed to compliance with the OTC Markets Group’s policy on stock promotion and the OTCQB standards. The Company encourages those interested in the Company to rely solely on information included in press releases and distributed by the Company through approved news wire disclosure and news services, combined with its filings and disclosures made with the Securities and Exchange Commission (“SEC”) and available on the SEC website (sec.gov) and the OTC Markets website.
About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.
This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the “Act”) protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
Joseph P. Macaluso
Tel-Instrument Electronics Corp.