Ontario-based Soyo Group Inc. (OTCBB: SOYO.OB) tried reassuring investors on Monday afternoon that its growth prospects are “solid” even though a similar Tempe, Ariz.-based high-definition TV manufacturer will probably be delisted from the Nasdaq Stock Exchange in New York because of bankruptcy.
A number of concerned Soyo investors called and e-mailed the Ontario company because of the industry news.
Syntax-Brillian Corp. (NasdaqGM: BRLC) filed bankruptcy last week and said on Monday that it’s receiving $7.5 million from various lenders and Silver Point Finance LLC to continue operations while selling assets to its major investor, Olevia International Group LLC.
Olevia is owned by privately-held TCV Group and would assume $60 million of Syntax’s debt.
Soyo, which supplies Honeywell International Inc. and other companies with flat-panel televisions, saw its stock close at 51 cents on Monday.
Soyo also said it signed a five-year lease at a 75,000-square-foot building — double its current space — in Ontario about five miles from where the company is currently located. It’s scheduled to move there in September.
Soyo is trying to get on the American Stock Exchange, which means increasing its stock value. The stock peaked at $1.48 in October 2007.
Shareholders will be asked to approve a common stock increase from 75 million to 200 million shares at Soyo’s Aug. 4 annual shareholder meeting. If approved, the company might be a lucrative prospect for institutional investors.
The company is trying to rebound from almost $5 million in losses for 2003 and 2004, and build upon the $6.5 million in earnings it reported from 2005 to 2007.
–matthew.wrye@inlandnewspapers.com
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