Rhythms NetConnections' Common Stock To Move To The Over-The-Counter Bulletin Board
ENGLEWOOD, Colo., May 25, 2001 /PRNewswire via COMTEX/ -- Rhythms NetConnections Inc. (Nasdaq: RTHM), a leading provider of broadband communication services, said today that the Company's common stock will begin trading on the OTC Bulletin Board(R) (OTCBB), effective as of the opening of business on May 30, 2001. The OTCBB is a regulated quotation service that displays real-time quotes, last-sale prices and volume information in over-the-counter (OTC) equity securities. The Company's ticker symbol (RTHM) will remain the same.
The move to the OTCBB follows the Company's receipt, on May 21, 2001, of formal notification from NASDAQ that the Company's common stock would be delisted from the NASDAQ National Market as of the opening of business on May 30, 2001, because the Company does not currently comply with the $4 million of net tangible assets and $1.00 minimum bid price requirements for continued listing on the NASDAQ National Market. The Company has decided not to appeal the delisting notice.
About Rhythms
Based in Englewood, Colo., Rhythms NetConnections Inc. (Nasdaq: RTHM) provides DSL-based, broadband communication services to businesses and consumers. Telecommunications services for Rhythms are provided by Rhythms Links Inc., a wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS (1-800-749-8467), or visit the company's Web site at www.rhythms.com.
Rhythms, Rhythms NetConnections and (any product names for which trademark applications have been filed) are trademarks of Rhythms NetConnections Inc.
The statements contained in these materials which are not historical facts may contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. Such statements are indicated by words or phrases such as "anticipate," "estimate," "projects," "believes," "intends," "expects" and similar words and phrases. The following are important factors that could cause Rhythms' actual results to differ materially from those expressed or implied by such forward looking statements: the Company's need to raise significant additional financing and continuing to work on extending its cash resources, evaluating the size of its operations, implementing one or more strategic alternatives; restructuring its balance sheet, attracting and retaining customers, managing its strategic investments and strategic relationships. Other factors include the highly competitive nature of the DSL market; the rapid rate of technological change in the telecommunications industry; Rhythms' history of operating losses and the unproven nature of its business model; customer agreements are generally non- exclusive and terminable by the customer on short notice; several customers are young, emerging companies that are not fully funded; Rhythms' existing capital structure may affect its ability to raise additional capital in the future; Rhythms' dependence on incumbent carriers for collocation and transmission facilities and on unrelated strategic third parties for certain sales and marketing services, equipment installation and fiber optic transport facilities; the need to retain and attract key personnel; and other economic, business, competitive and governmental and/or regulatory risks detailed in Rhythms' filings with the Securities and Exchange Commission. Rhythms undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT: Chris Hardman, Rhythms Public Relations, 303-476-4259, chardman@rhythms.com, or Ali Perry, Rhythms Investor Relations, 303-476-5739, aperry@rhythms.com
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