AmbiCom Holdings, Inc. (fka ABHI)

[TenKay]

There are two different SEC actions in play here. One is the 10 day temporary suspension. The other is the administrative proceeding against the company that could result in its revocation.

The temporary suspension is the only action the SEC can take unilaterally. It can only be temporary because Congress decided that the SEC shouldn’t have the power to suspend beyond that unilaterally.

Because of the suspension the stock will AUTOMATICALLY be demoted to the greys and will reopen for trading on January 31 NO MATTER what the company does or doesn’t do in the meantime.

The second action that was undertaken concurrently with the suspension were the revocation proceedings. In this case the company will be able to respond to the SEC complaint and make their case before an administrative law judge. This is the “due process” part since they are an SEC registrant the SEC cannot unilaterally revoke their registration. The company has ten days to respond to the notice regarding those proceedings. That 10 days is separate and apart from the length of the temporary suspension...it just happens to be the same number of days.

All the company can do at this point is try to avoid revocation of the stock. And in that case it can either avoid it outright or be slapped with a one year suspension instead of a “forever” one essentially.

But before anyone gets their hopes up...I am not aware of a company ever being able to avoid the revocation. There is a reason the company is delinquent...and that reason likely makes it impossible to jump through the hoops necessary to avoid revocation. And even if they aren’t revoked, they still have to get current and then find a market maker to sponsor a 211...and that ain’t going to happen for reasons already discussed on this board.

The only option...and it is one that has rarely been attained...if at all...is for the company to accept the revocation and then start over by filing a Form 10 and ultimately taking a shot at a 211. But even under the best case scenario that would be a year or two at best.

The reality is this ticker is all but dead.