SOURCE: Daxor Corp.

Daxor Corp.

September 20, 2010 14:55 ET

(NYSE Amex: DXR) Daxor Corporation Announces SEC Administrative Action

NEW YORK, NY--(Marketwire - September 20, 2010) -  Daxor Corporation, (NYSE Amex: DXR), a medical instrumentation and biotechnology company, today announced that the United States Securities and Exchange Commission ("SEC") instituted administrative proceedings pursuant to the Investment Company Act of 1940 on Friday, September 17, 2010.

The issue of whether or not Daxor is an investment company was first raised by the SEC in 1984. The Company has disclosed in previous filings that it is dependent upon earnings from its investment portfolio to fund operations.

The Company has disclosed in previous 10-Q and 10-K filings the receipt of Wells Notices from the SEC requesting comments on the SEC Staff's view that the Company was in violation of Section 7(a) of the Investment Company Act in that it was operating as an unregistered investment company in 2005 and 2007. The Company provided a detailed response to these Wells Notices describing why it is an operating company and not an investment company.

In November 2009, the staff of the Northeast Regional Office of the SEC contacted the Company and invited the Company to make a new Wells submission based upon more recent operations and results. The Company responded in detail to the staff's invitation in December 2009.

The Company has twenty days from the date proceedings were instituted to file an answer in response to the administrative proceedings.

The Administrative Law Judge will issue an opinion no later than 300 days from September 17, 2010 pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.

The Company plans to issue a press release in the near future which will contain a more detailed response to questions about its investment activity and its role in supporting the Company's research and development activities.

The Company expects no immediate impact on its operations from this administrative proceeding. The Company feels strongly that its history of operations demonstrate that it is primarily an operating medical instrumentation and biotechnology company and not primarily an investment company.

Contact Information

  • Contact Information:
    Daxor Corporation
    David Frankel
    212-330-8504
    (Chief Financial Officer)
    dfrankel@daxor.com

    Stephen Feldschuh
    212-330-8515
    (Chief Operating Officer)
    stephen@daxor.com