Intelligent Systems Responds to Recent “Short and Distort” Reports and Schedules Upcoming Conference Call
NORCROSS, Ga., June 03, 2019 (GLOBE NEWSWIRE) -- On May 24 and May 30, 2019, separate commentaries about Intelligent Systems Corporation were released by Aurelius Value and Grizzly Reports. The anonymous authors never contacted the company for clarifications or answers to any questions they may have. Had they done so, Intelligent Systems would have pointed out factual errors, incomplete information and erroneous conclusions which are rebutted by Intelligent Systems’ public filings and other publicly available information.
As an example, one report stated:
“We believe that Intelligent Systems Corp. (INS) has its employees set up or take control of undisclosed shell companies in Asia, who then partake in undisclosed related party transactions with INS intended to either round-trip revenue back to INS or siphon money out of the company.”
This statement is a complete falsehood in that Intelligent Systems has NEVER had an employee set up undisclosed companies or take control for the benefit of Intelligent Systems. However, when an employee informed Intelligent Systems that he was working on his own time with a group that wanted to set up a company to enter the large India loan market, Intelligent Systems asked to be a participant in the company and offered to invest if the new company would use CoreCard as its processor.
An example of a similar Intelligent Systems investment that was ignored in the commentaries was a $100,000 investment several years ago with the requirement that the company use CoreCard as a processor. Eventually Intelligent Systems sold most of that stock for ~$1,500,000 and has received over $5,000,000 in processing revenue from the company over several years. We consider these investments, characterized in the commentaries as “round-trip revenue or siphon money”, to be highly attractive business transactions for the benefit of our shareholders. We are minority shareholders without any ability to significantly influence the operations of these investees.
We believe it is in the best interest of our shareholders for management to remain focused on business rather than debating or responding to rumor and innuendo. However, due to the number of inquiries to the company, management believes it important to now respond to these misrepresentations. It is also important for interested parties to consider that the individuals responsible for the “short and distort” reports have a financial interest in a decline in the company’s stock price. We believe this calls into question the motivation and intent behind the allegations as well as the timing of its release.
Intelligent Systems management plans to host an investor conference call on Wednesday June 5, 2019 at 11 A.M. Eastern Time to discuss corporate developments and to address the false and misleading statements and innuendo in the above-mentioned commentaries.
Interested investors are invited to attend the conference call by dialing 855-766-6518 and entering conference ID 9882445. A transcript of the call will be posted on the company’s website at www.intelsys.com as soon as available after the call.
About Intelligent Systems Corporation:
For over thirty-five years, Intelligent Systems Corporation [NYSE American: INS] has identified, created, operated and grown technology companies. The company’s principal operations are CoreCard Software, Inc. (www.corecard.com) and its affiliate companies. CoreCard designs, develops, and markets a comprehensive suite of software solutions to corporations, financial institutions, retailers and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, loyalty programs, and accounts receivable and small loan transactions. CoreCard also offers prepaid and credit card processing services using its proprietary software solutions. CoreCard's flexible and proven processing platform has recently been deployed in many countries in addition to the United States including Australia, Canada, China, the United Arab Emirates, France, Italy, Mexico, New Zealand, Singapore, South Africa and the United Kingdom. Further information is available on the company’s website at www.intelsys.com or by calling the company at 770-381-2900.
In addition to historical information, this news release may contain forward-looking statements relating to Intelligent Systems Corporation and its subsidiary and affiliated companies. These statements include all statements that are not statements of historical fact regarding the intent, belief or expectations of Intelligent Systems Corporation and its management with respect to, among other things, results of operations, product plans, and financial condition. The words "may," "will," "anticipate," "believe," "intend," "expect," "estimate," "plan," "strategy" and similar expressions are intended to identify forward-looking statements. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. The company does not undertake to update or revise any forward-looking statements whether as a result of new developments or otherwise, except as required by law. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are instability in the financial markets, delays in product development, undetected software errors, competitive pressures, changes in customers’ requirements or financial condition, market acceptance of products and services, the impact of new or changes in current laws, regulations or other industry standards, risks relating to unauthorized access to confidential information due to criminal conduct, attacks by hackers, employee or insider malfeasance and/or human error and declines in general economic and financial market conditions, particularly those that cause businesses to delay purchase decisions.
Contact: Intelligent Systems Corporation
Matthew A. White, Chief Financial Officer
Source: Intelligent Systems Corporation