WEST CHESTER, Pa., Dec. 21, 2006 — ComCam, Inc. (OTC Bulletin Board: CMCA) today announced the unanimous decision of its board of directors to seek shareholder approval to withdraw ComCam's election to be treated as a Business Development Company ("BDC") pursuant to Section 54 of the Investment Company Act of 1940 (the "Act").
On January 10, 2005, ComCam, Inc., elected to be regulated as a BDC as outlined in the Investment Company Act of 1940. A BDC is a publicly registered closed-end investment company that is regulated under the Investment Act to provide capital to small developing businesses in the United States. A BDC is required either to control the businesses or make available significant managerial assistance. A BDC is not intended to be a passive investment vehicle. Investments made by a BDC are restricted to qualifying assets with at least seventy percent (70%) of a BDC's assets required to be securities of private or thinly traded U.S. public companies.
The decision to withdraw ComCam's BDC election was based on the following factors: (i) the Company has not, since electing to be a BDC, managed to conduct its operations in a manner compliant with the regulations governing BDC's, and (ii) ComCam has recently received correspondence from the Securities and Exchange Commission that cited several areas of non-compliance asking that ComCam correct the compliance infractions and file a response.
According to ComCam Chairman and CEO, Don Gilbreath, "The BDC as a capital formation and management company was unable to secure suitable finance to execute its plan of incubation and acquisition of promising ventures. The decision to withdraw ComCam's election as a BDC will not affect the operations of ComCam International, Inc., our wholly owned subsidiary which develops network video technology, products and solutions."
Forward-Looking Statements:
A number of statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. A safe-harbor provision may not be applicable to the forward-looking statements made in this press release because of certain exclusions under Section 27A(b). These forward-looking statements involve a number of risks and uncertainties, including the sufficiency of existing capital resources, uncertainties related to ComCam's products and technology, and the ability to secure additional sources of financing. The actual results that ComCam may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. ComCam encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB, Form 10-QSB and 8K which details the recent SEC compliance issues. ComCam's public filings may be viewed at http://www.sec.gov.
Contact:
David Rosen
V.P., Corporate Development
ComCam Inc.
Tel. 610.436.8089
Email
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