NAPLES, FL--(Marketwired - Aug 26, 2014) - FTE Networks, Inc. (PINKSHEETS: FTNW), a premier provider of solutions services in the telecommunications and technology vertical, today announced that on August 22, 2014 (Friday afternoon) the company was notified by way of certified mail of a trading suspension applied to our common stock. We are prepared to cooperate with FINRA and the SEC to rectify this matter and bring the company back into compliance. We wanted to provide shareholders additional information regarding the audit situation at FTE Networks, Inc.
At the time of the reverse merger between Focus Venture Partners, Inc. and Beacon Enterprise Solutions Group, Inc. in 2013, the 2012 BEAC financials were disorganized and in some case not in our possession. There was a period of time in September 2012 where all of the financials were turned over to another entity due to a sale of assets and that information has been difficult to obtain. Again, this was pre-merger and we've spent the last ten months tracking down the pertinent information to complete the 2012 10-K. We have recently been provided the material needed to begin the audit process and are now moving forward. We anticipate 45 days to complete the 2012 audits and then another 60 days to complete the 2013 audit. At that point, the company will only need to submit the 2014 quarterly earnings reports ("Qs"), which are close to being finalized as our current management team had control of those quarterly numbers.
"We view this as a temporary situation and hope to be current before the end of the year," commented Michael Palleschi, CEO of FTE. "We don't anticipate additional delays and management intends on providing shareholder updates going forward. We will comply with all SEC rules and ensure transparency to the SEC and the company shareholders. Finally, we will work diligently to ensure compliance issues are met and a situation like this is not encountered in the future."
As far as the company's business is concerned, this suspension has no effect on our ability to continue our growth. We are operating and moving forward successfully. We will have information as we progress through this situation and will put out releases and 8-Ks, as is our normal procedure.
About FTE Networks, Inc.
FTE Networks is a vertically integrated company with an international footprint. Since its inception, FTE Networks has steadily advanced its management, operational and technical capabilities to become a leading provider of services to the telecommunications and wireless sector with a focus on turnkey solutions. FTE Networks provides a comprehensive array of services centered on quality, efficiency and customer service.
Forward Looking Statements
This release may contain forward-looking statements relating to the business of FTNW. All statements other than historical facts are forward-looking statements, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated, believed, estimated or expected. These risks and uncertainties are described in detail in our filings with the Securities and Exchange Commission. Forward-looking statements are based on FTNW's current expectations and beliefs concerning future developments and their potential effects on FTNW. There is no assurance that future developments affecting FTNW will be those anticipated by FTNW. FTNW undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.