SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 1998
EA Industries, Inc.
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(Exact name of registrant as specified in its charter)
New Jersey
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(State or other jurisdiction of incorporation)
1-4680 21-0606484
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(Commission File Number) (IRS Employer Identification No.)
185 Monmouth Parkway, West Long Branch, New Jersey 07764-9989
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(Address of principal executive offices, including zip code)
(732) 229-1100
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(Registrant's telephone number)
N/A
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(Former name or former address, if changed since last report.)
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Item 5. Other Events.
On August 4, 1998, the New York Stock Exchange ("NYSE") announced that
effective on August 19, 1998 (or the date the Company is eligible for trading on
another system or exchange, if earlier) it would suspend trading in the Common
Stock of the Company (the "Stock") and recommend that the Stock be de-listed
from the NYSE. The Company is attempting to become eligible for trading on the
OTC Bulletin Board before the suspension to prevent any gap between such
suspension and such eligibility in the trading of the stock.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
ITEM 7. Exhibits
1. Press Release dated August 4, 1998.
EA Industries, Inc.
Registrant
By: /s/ Howard P. Kamins
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Howard P. Kamins
Dated: August 5, 1998 Vice President and General Counsel
Exhibit 1
EAINEWS
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
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Mr. Frank G. Brandenberg Glenn Sapadin Joel Herkovotis
President & CEO (General info.) (Analyst Info.)
(732) 229-1100, ext. 511 (212) 661-8030 (212) 661-8030
EA INDUSTRIES TO TRANSFER TRADING OF ITS COMMON STOCK
Company Obtains Additional Financing
West Long Branch, NJ, August 4, 1998 - EA Industries, Inc. (NYSE: EA) announced
that it has been informed by the New York Stock Exchange that de-listing
procedures have been initiated. Trading will continue on the New York Stock
Exchange for up to two business weeks, giving management time to list EA stock
on an alternate exchange. The Company noted that the initial trading vehicle
will most likely be the OTC Bulletin Board so as to maintain continuity in the
trading of the stock.
"The action by the NYSE has no direct bearing on our plans to grow our business
and return the Company to profitability," said Frank G. Brandenberg, President
and Chief Executive Officer of EA Industries.
"Over the past year, the Company has assembled an entirely new Board of
Directors, a new management team and has focused our resources on improving our
position in the rapidly growing Electronics Manufacturing Services Industry.
During this time, we have greatly expanded the customer base of our Tanon
Manufacturing business, cut our break even point considerably, added higher
margin prototype and quick turn services through the creation of Tanon EXPRESS,
and created industry leading supply chain integration software, presently
undergoing beta tests in our manufacturing facilities," continued Mr.
Brandenberg.
"Importantly, EA has recently received additional financing, approximately $4
million, through a convertible debenture offering. These proceeds will be used
primarily to finance the start-up costs
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associated with the Company's new customers and for other working capital
needs. This funding is expected to be sufficient to meet the Company's cash
needs for the remainder of the year," added Mr. Brandenberg.
"The action taken by the New Yoirk Stock Exchange is understandable considering
the many years of huge losses which began to abate only over the past year. The
accumulating result of these losses has had EA Industries, Inc. outside of NYSE
listing criteria for a number of years. Where the stock is listed does not have
a bearing on our plans to continue to grow the core business, add additional
Tanon EXPRESS facilities, and market Supply Vantage from our wholly owned
subsidiary, SupplyPoint Solutions, Inc. With our expected return to
profitability and continued efforts to strengthen our financial position, we
plan to eventually move to the NASDAQ or the American Stock Exchange," concluded
Mr. Brandenberg.
EA Industries, Inc. through its wholly owned subsidiaries; Tanon Manufacturing,
Inc., Tanon EXPRESS, and SupplyPoint Solutions, Inc., is a full-service
manufacturing partner servicing the electronics industry from manufacturing
facilities and offices in West Long Branch, NJ, Fremont, CA and Wareham, MA.
Except for historical matters contained in this press release, statements made
in this press release are forward looking and are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that these forward-looking statements reflect numerous
assumptions and involve risks and uncertainties which may affect EAI's business
and prospects and cause actual results to differ materially from these forward
looking statements, including loss of current customers, reductions in orders
from current customers, or delays in ordering by current customers, failure to
obtain anticipated contracts or orders from new customers, failure to obtain
financing, higher material or labor costs, unfavorable results in litigation
against EAI, economic, competitive, technological, governmental, and other
factors discussed in EAI's filings with the Securities and Exchange Commission.
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