Ontario company a step closer to possible AMEX listing

     Soyo Group Inc. (OTCBB: SOYO.OB) is one step closer to possibly getting a spot on the American Stock Exchange.
     But the Ontario-based consumer electronics distributor's stock must rise to $2 a share before the exchange will list the company. Shares closed at 77 cents on Tuesday.
     Shareholders gave approval at Soyo's annual meeting on Monday for the company to issue 125 million extra shares of common stock. It would more than double the company's outstanding shares.
     Soyo is trying to attract investors willing to put their money on the line.
     In the meantime, it's looking to acquire electronics companies that are struggling financially.
     "We've spoken to a few companies already this year," said Ed O'brien, director of marketing. "There are other companies that have approached us as an acquisition partner... companies that are in trouble."
     If the stock can get listed on AMEX, Soyo might be a lucrative prospect for institutional investors with deeper pockets.
     Shareholders also re-elected its current board of directors for another term, while increasing employee stock options.
     The 43-employee company is trying to shrug off almost $5 million in losses for 2003 and 2004 and build upon its $6.5 million in earnings from 2005 to 2007.
     Similar companies comparable to Soyo's size have gone bankrupt over the last couple of years. Last year, Soyo signed a deal with Honeywell International Inc. to supply the electrical industry giant with LCD and plasma flat-panel televisions.
     The company's stock reached a record peak of $1.48 in October.
     --matthew.wrye@inlandnewspapers.com