root9B Holdings Announces Notice of Foreclosure Sale of its Assets; Updates Status of 10-Q Filing

Real Estate Weekly News

By a News Reporter-Staff News Editor at Real Estate Weekly News -- root9B Holdings, Inc. (Nasdaq: RTNB) ("RTNB") announced that, as a result of its default on its secured indebtedness, it received a foreclosure notice from Centriole Reinsurance Company, Ltd., as agent for RTNB's secured creditors (the "Agent"). To satisfy RTNB's outstanding secured indebtedness, the Agent intends to sell substantially all of RTNB's assets at an auction to conclude on August 31, 2017. Although RTNB continues to work with its secured creditors and other potential investors to raise capital before the auction concludes on August 31, 2017, there can be no assurances it will be successful in these efforts.

Joseph J. Grano, Jr., RTNB's Non-Executive Chairman of the Board and former CEO, and Dan Wachtler, RTNB's President, each of whom is a holder of RTNB's secured indebtedness, expressed their disapproval of the Agent's actions. "As individual investors in the secured debt, we are disappointed with the foreclosure notice, however the majority prevails in the ultimate decision," said Mr. Grano.

"While the Company has been extremely appreciative of the support we have had from our secured lenders, Mr. Grano and I disagree with the actions being taken by the Agent and continue to pursue alternatives to the auction process that we believe will be in the best interest of our Company and its stockholders," said Mr. Wachtler.

A copy of the foreclosure notice can be found in the Current Report on Form 8-K filed with the Securities and Exchange Commission (the "Commission") on August 18, 2017. Additional information regarding RTNB's secured indebtedness can be found in the Current Reports on Form 8-K filed with the Commission on August 10, 2017 and August 15, 2017.

RTNB also announced that it will require additional time to file its Form 10-Q for the period ended June 30, 2017. RTNB received a notification letter from The Nasdaq Stock Market ("Nasdaq") on August 16, 2017 that it is not in compliance with Nasdaq Listing Rule 5250©(1) because it did not timely file its Form 10-Q with the Commission. The Nasdaq letter provides that RTNB has until October 16, 2017 to submit a plan to regain compliance. RTNB received a separate letter from Nasdaq on August 17, 2017, that it is not in compliance with the independent director and audit committee requirements set forth in Nasdaq Listing Rule 5605. The Nasdaq letter provides notes RTNB is given a grace period until the earlier of RTNB's next annual meeting of stockholders or August 7, 2018, to regain compliance with the rules. There can be no assurance RTNB will be able to regain compliance with Nasdaq's rules.

The events described above are likely to continue to put pressure on the Company's stock price, and could render its securities worthless if concluded.

Keywords for this news article include: Foreclosure, Real Estate, root9B Holdings Inc.