Ouch! American International Industries, Inc. Stock Is Pummeled After Announcing NASDAQ Delisting

August 4, 2010

American International Industries, Inc. (NASDAQ: AMIN – $0.73*) announced today that it has voluntarily withdrawn its listing on the NASDAQ Stock Market effective on or before August 13, 2010. It will then be quoted on the OTCBB under the symbol AMIN. The stock closed at $0.73 down 17.05%.

The Company has received notices over the last several months regarding it failure to comply with NASDAQ listing requirement. The Company did later rectify these issues after notice was served.

Mr. Daniel Dror, Chairman and CEO of American International Industries, Inc., stated, “The Company has always sought advice of its SEC and Corporate legal counsel prior to board approval of any corporate action, including any issuance of shares to officers, directors, key employees and consultants/counsel.” Mr. Dror also stated, “In addition, all of our proxy solicitations for shareholder approval of board of director actions, both prior to and subsequent to our NASDAQ listing, have always received the affirmative votes of over 85% of our shareholders and clearly would have received prior shareholder approval for our 2010 Employee Benefit Plan and any other share issuance. Since the Company’s NASDAQ listing on August 27, 2007, it has continued its practice of preserving its cash reserves through the issuance of shares for valuable services to the Company as compensation to officers, directors, key employees and legal counsel; a practice that is common among many smaller reporting companies, among others.”

The Company noted that it and the board of directors have been considering this voluntary withdrawal from NASDAQ listing since the first quarter of 2010. The Company sites the costs of approximately $100,000 per year, increased short selling, and lack of liquidity for making the decision to withdrawal the NASDAQ listing.

Mr. Dror further stated, “Notwithstanding our voluntary withdrawal from listing at this time, in the event that we determine, in the future, that it is again in our shareholders’ best interests to be listed on any of the Exchanges, we are in the process of establishing governance procedures so as to be in compliance with the listing requirements of all Exchanges. Based upon the continued decline of our share price since our NASDAQ listing, our management and board of directors believe that at this time our shareholders will benefit from being on the OTCBB. We continue to evaluate the desirability of application to an Exchange, such as the American Stock Exchange, depending upon market conditions, among other factors.”

*Price per share at the time the article was published or the price of the last trade.

Disclosure: The author holds a long position in AMIN at the time of this article.

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