SOURCE: Equus Resources, Inc.

July 11, 2007 13:00 ET

Equus Resources Releases 2006 Financial Statements and Announces Other Developments

ATLANTA, GA--(Marketwire - July 11, 2007) - Equus Resources, Inc. ("Equus") (PINKSHEETS: EQUR) announced today that it has released its 2006 financial statements on its Web site, www.equusresources.com. These statements will also be included in the 2006 Annual Report currently being prepared for distribution to Equus stockholders.

Equus also announced that it is postponing its 2007 Annual Meeting of Stockholders until later this year for two reasons: (1) certain preferred stockholders who are in the process of converting their shares of non-voting convertible preferred stock to common stock have requested that the 2007 Annual Meeting be scheduled subsequent to completion of the conversions so that they can vote their shares at the 2007 Annual Meeting; and (2) Equus is currently involved in negotiations concerning a potential significant corporate transaction and is considering a corporate recapitalization for which stockholder approval may be required or requested, in which case management would want the matter(s) to be considered and voted on by the Equus common stockholders at the 2007 Annual Meeting.

Additionally, according to its management, Education Partners International, Inc. ("EPI"), the entity into which the education business of Equus was spun out last year in exchange for a 40% equity interest, has delivered a demand letter from its legal counsel to an individual who had agreed personally and as the managing partner of an investment partnership to fund for EPI a $5 million credit facility. This letter: (i) serves formal notice of breach of the credit agreement; (ii) demands immediate performance of the extension of funds as required by the credit agreement; and (iii) advises the recipient that EPI plans to pursue all available legal and equitable remedies if the breach is not cured. This demand letter outlines more than 10 potential causes of action, several of which would support claims for punitive and treble, in addition to compensatory, damages.

Forward-Looking Statements:

Any statements made herein which are not historical facts contain certain "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the Company to which this release pertains. The actual results of the specific items described in this release, and the Company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgment of management of the Company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties, including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, the receipt of revenues, and other factors, many of which are beyond the Company's control.

Contact Information

  • Contact:
    Randy Harris
    President
    770-442-2364