Applied Digital, which is getting most of the attention in the RFID arena for its VeriChip Corp. subsidiary news, said it doesn’t know why it experienced a recent, sharp decline in stock price.
The Delray Beach, Fla. company, which goes by the “ADSX” ticker on the NASDAQ, said it experienced a decline of more than 20 percent in the price of its stock over the past two days.
In more positive news, the company reported positive developments with VeriChip, as well as its Digital Angel Corporation and Government Telecommunications subsidiaries.
Applied Digital Comments on Recent Trading Activity in Company’s Common Stock
DELRAY BEACH, Fla.–(BUSINESS WIRE)–June 13, 2006–Applied Digital (NASDAQ:ADSX), a leading provider of identification and security technology, commented today on recent trading activity in the Company’s common stock. Applied Digital knows of no reason for the decline of more than 20% in the price of its stock over the past two days. The Company continues to experience positive developments in both its VeriChip Corporation, Digital Angel Corporation (AMEX: DOC) and Government Telecommunications (GTI) subsidiaries. Since the beginning of June, a subsidiary of Digital Angel was awarded a $3.2 million contract from the South Carolina Army National Guard and GTI was awarded a contract valued at up to $50 million over a seven-year period, to provide telecommunications equipment and telephone maintenance support services to over 260 United States Attorney’s offices throughout every State and U. S. Territory. In addition, when conditions warrant, the Company is prepared to proceed with its IPO of VeriChip Corporation.
A registration statement relating to the IPO of VeriChip Corporation has been filed with the Securities and Exchange Commission but has not yet become effective. The underlying securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About VeriChip Corporation
VeriChip Corporation, headquartered in Delray Beach, Florida, develops, markets and sells radio frequency identification, or RFID, systems used to identify, locate and protect people and assets. VeriChip’s goal is to become the leading provider of RFID systems for people in the healthcare industry. VeriChip sells passive RFID systems for identification purposes and active RFID systems for local-area location and identification purposes. VeriChip recently began to market its VeriMed(TM) Patient Identification System which is used to rapidly and accurately identify people who arrive in an emergency room and are unable to communicate. This system uses the first human-implantable passive RFID microchip, the implantable VeriChip(TM), cleared for medical use in October 2004 by the United States Food and Drug Administration.
About Applied Digital – “The Power of Identification Technology”
Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company’s unique and often proprietary products provide identification and security systems for people, animals, the food supply, government/military arena, and commercial assets. Included in this diversified product line are RFID applications, end-to-end food safety systems, GPS/Satellite communications, and telecomm and security infrastructure, positioning Applied Digital as the leader in identification technology. Applied Digital is the owner of a majority position in Digital Angel Corporation (AMEX:DOC).
Statements about the Company’s future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company’s actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.