American Stock ExchangeThe Leading Exchange for Small & Mid-Cap Companies The Semi Annual Economic Conference Tel Aviv, Israel November 2006Equities Department.
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Slide 1
American Stock ExchangeThe Leading Exchange for Small &
Mid-Cap Companies The Semi Annual Economic Conference Tel Aviv,
Israel November 2006Equities Department
Slide 2
2 American Stock Exchange 2 Visit us at www.Amex.com Amex: The
Most Diversified US Marketplace The American Stock Exchange is the
only primary exchange offering trading across three distinct
business lines: Equities Capable, supportive ally to small and
mid-cap companies seeking increased visibility and institutional
ownership Listed companies range from innovative start-ups to those
in the S&P 500 Centralized trading routed through a single
specialist firm ensures a fair and orderly market with enhanced
depth and liquidity Options One of the largest exchanges in the
world for equity options trading Exchange Traded Funds (ETFs)
Created by the American Stock Exchange in 1993, ETFs are among the
highest demand investment categories in the world Of the
approximately 320 ETFs in existence, 187 trade on the Amex,
representing over $235 billion in assets Source: American Stock
Exchange; FactSet Data as of 7/12/06
Slide 3
3 American Stock Exchange 3 Visit us at www.Amex.com Source:
American Stock Exchange; S&P; FactSet Research Systems Based on
S&P GICS Classification System Data as of 08 { /31/06 } { }
Amex Sectors % Based on Total Number of Listed Companies 28% of all
Listed Companies on the Amex represent Information Technology and
Health Care Sector
Slide 4
4 American Stock Exchange 4 Visit us at www.Amex.com Amex
Listed Healthcare Companies 91 Healthcare companies currently
listed on Amex. 15% of Amex companies are in the Healthcare sector.
IVAX Corp / TEVA Merger IVAX Amex has been listed since 1987, grew
to 8 billion dollar market capitalization. Largest ever Israeli
M&A, created the worlds largest generic pharmaceutical
company.
Slide 5
5 American Stock Exchange 5 Visit us at www.Amex.com Amex
Listed Healthcare Companies * Symbol { { ANX AKN KAD BIO BVX CPD
CNU COR DIL ESC FVE HTI HEB HH DMX ISV ILI IMA ILE JAV LCI MCU MDV
MDF BUF NHC PRZ PTN DDD SVA YMI } } Company Name { { ADVENTRX
Pharmaceuticals Inc. Akorn Inc. Mojave Southern Inc. Bio-Rad
Laboratories Inc. Bovie Medical Corp. Caraco Pharmaceutical
Laboratories Inc. Continucare Corp. Cortex Pharmaceuticals Inc.
Dyadic International Inc. Emeritus Corp. Five Star Quality Care
Inc. Halozyme Therapeutics Inc. Hemispherx Biopharma Inc. Hooper
Holmes Inc. I-Trax Inc. InSite Vision Inc. Interleukin Genetics
Inc. Inverness Medical Innovations Inc. Isolagen Inc. Javelin
Pharmaceuticals Inc. Lannett Co. Inc. Medicure Inc. Medivation Inc.
Metropolitan Health Networks Inc. Minrad International Inc.
National Healthcare Corp. PainCare Holdings Inc. Palatin
Technologies Inc. SCOLR Pharma Inc. Sinovac Biotech Ltd. YM
BioSciences Inc. } } Symbol { { AIS BSM CVM CMD GTF DXR ELI EAR HEM
IDP IMM INO IPA LRP MHA MRY MII NVD PME PMD QD QSC RGX RGN RVP LIV
SGN SSY TTP TTG REX } } Company Name { { Antares Pharma Inc. BSD
Medical Corp. CEL-SCI Corp. Criticare Systems Inc. Cytomedix Inc.
Daxor Corp. Elite Pharmaceuticals Inc. HearUSA Inc. HemoSense Inc.
Idera Pharmaceuticals Inc. Immtech Pharmaceuticals Inc. Inovio
Biomedical Corp. Interpharm Holdings Inc. Lorus Therapeutics Inc.
Manhattan Pharmaceuticals Inc. Memry Corp. ALD Services Inc.
NovaDel Pharma Inc. PreMD Inc. Psychemedics Corp. QuadraMed Corp.
Questcor Pharmaceuticals Inc. Radiologix Inc. RegeneRX
Biopharmaceuticals Inc. Retractable Technologies Inc. Samaritan
Pharmaceuticals Signalife Inc. SunLink Health Systems Inc. Titan
Pharmaceuticals Inc. Tutogen Medical Inc. ViRexx Medical Corp. } }
Symbol { { AXK ADH ALT ADL AMS HRT APY BPA KAL CTE CLN CTU DIO ECI
IMX IOX IVD LMZ MZT MPP NEP ONI ONH PLC PRW PZZ SNT UPI VRA } }
Company Name { { Accelr8 Technology Corp. Adherex Technologies Inc.
Alteon Inc. AMDL Inc. AMERICAN SHARED HOSPITAL SV COM Arrhythmia
Research Technology Inc. Aspyra Inc. BioSante Pharmaceuticals Inc.
Callisto Pharmaceuticals Inc. Cardiotech International Inc. Celsion
Corp. Chad Therapeutics Inc. Diomed Holdings Inc. Encision Inc.
Implant Sciences Corp. Iomed Inc. IVAX Diagnostics Inc. LMS Medical
Systems Inc. Matritech Inc. MTS Medication Technologies Inc.
Nephros Inc. Oragenics Inc. Orion HealthCorp Inc. PLC Systems Inc.
Pro-Pharmaceuticals Inc. Prospect Medical Holdings Inc. Senesco
Technologies Inc. Uroplasty Inc. Viragen Inc. } } Includes all Amex
Listed HealthCare Companies. Source: American Stock Exchange;
FactSet Research Systems. As of { August 31, 2006 } { }
Slide 6
6 American Stock Exchange 6 Visit us at www.Amex.com Amex
Listed Technology Companies* ATAApogee Technology Inc. CVVCVD
Equipment Corp. TRTTrio-Tech International NLXAnalex Inc.
ASBAscendia Brands Inc. AXOAXS-One Inc. CVNConversion Services
International Inc. GTEGlobeTel Communications Corp. GEXGlobix Corp.
GVPGSE Systems Inc. HXHalifax Corp. ILCiLinc Communications Inc.
IWImageWare Systems Inc. IIGImergent Inc. INSIntelligent Systems
Corp. MGTMedicSight Inc. ONTON2 Technologies Inc. PNSPinnacle Data
Systems Inc. DLKSemotus Solutions Inc. SLPSimulations Plus Inc.
SBNSoftBrands Inc. LOVSpark Networks PLC TWWTerremark Worldwide
Inc. THKThink Partnership Inc. TCXTucows Inc. UDWUS Dataworks Inc.
WYYWidepoint Corp. AEYADDvantage Technologies Group Inc.
APIAdvanced Photonix Inc. AMKAmerican Technical Ceramics Corp.
TESAmerican Telecom Services Inc. AFTAxesstel Inc. BIBell
Industries Inc. BDRBlonder Tongue Laboratories Inc. TQCash
Technologies Inc. CSNCity Network Inc. CGNCognitronics Corp.
JCSCommunications Systems Inc. DOCDigital Angel Corp. EAGEagle
Broadband Inc. ASYElecsys Corp. EMAeMagin Corp. HCOHyperSpace
Communications Inc. IDNIntelli-Check Inc. IINIntriCon Corp. ISOISCO
International Inc. ITIIteris Inc. RAERAE Systems Inc. RWCRELM
Wireless Corp. SNRSunair Electronics Inc. TKOTelkonet Inc.
TLXTrans-Lux Corp. VNXVendingData Corp. VIIVicon Industries Inc.
WEXWinland Electronics Inc. WTTWireless Telecom Group Inc.
XWGWireless Xcessories Group Inc. Symbol Company Name
Slide 7
7 American Stock Exchange 7 Visit us at www.Amex.com Since {
October 2003 } the Amex Composite Index has outpaced both the NYSE
Composite Index and the Nasdaq Composite Index, as well as the
major financial indices. { } { } Source: American Stock Exchange
Indexed price to 100 as of { 9/30/03 } { } Outperforming Major
Markets & Indices Amex Composite ( { 92.5 } %) { } NYSE
Composite ( { 50.1 } %) { } Nasdaq Composite ( { 26.4 } %) { }
S&P 500 ( { 34.1 } %) { } Wilshire 5000 ( { 38.3 } %) { }
Russell 2000 ( { 48.8 } %) { }
Slide 8
8 American Stock Exchange 8 Visit us at www.Amex.com Blue Sky
Exempt Blue Sky Exempt When a company is listed on Amex a National
Exchange, it is exempt from registering its stock in each of the US
states its securities are being offered in. This is a great
advantage, as such a process can be costly and lengthy, and can be
avoided by listing on Amex (unlike the NASDAQ Capital Market). AEMI
Platform AEMI Platform Will offer market participants a greatly
expanded range of automated transaction services for equities and
ETFs and will combine the speed of an electronic market with the
dedicated liquidity of a specialist-auction market. Real market
intelligence Real market intelligence - Specialist will make a
point of proactively providing intelligence on the forces affecting
your stock, breaking down trading into institutional, arbitrage and
retail categories. They are in regular communication with their
listings, giving those companies greater knowledge and therefore
control over their trading profiles. Specialist Specialist The
Company chooses the AMEX specialist, that will act as a long-term
partner with the company, providing the best possible execution and
price discovery. The market maker has no obligation to the company
and can step away from trading the companys stock at any time,
which can cause trading imbalances and volatility. Increased US
Shareholder Ownership Increased US Shareholder Ownership
Institutions and retail investors representing the majority of
total equity investment in the US will only buy US listed,
SEC-registered equities. The Company therefore has the opportunity
to significantly increase US investor demand for its shares beyond
direct investment by US international funds in the Home market.
Advantages for Israeli Companies to List on Amex
Slide 9
9 American Stock Exchange 9 Visit us at www.Amex.com Great
Technology. Renewed Commitment. AEMI (Auction & Electronic
Market Integration) combines the best features of the auction
market with new capabilities only possible in an automated trading
environment. With AEMI you can expect: Reg NMS Compliance Under Reg
NMS, Amex will qualify as an automated trading center and will
publish automated quotes by default. Incoming orders will be
executed within a fraction of a second without human intervention,
maintaining our competitiveness in a fast-paced trading
environment. Choice of execution method Investors can choose to
have their orders executed automatically against published bids or
offers with turnaround times measured in milliseconds, or handled
by floor brokers with point of sale privileges. Immediate quote
updates Quotes will be published automatically in response to order
flow, removing the need for manual updates by specialists and
allowing continuous automated trading. Automated price improvement
Incoming orders may receive superior execution by interacting with
orders already programmed to offer price improvement in the
electronic environment. Price discovery in the auction market The
specialist auction market will continue to bring added liquidity,
dampen volatility and enhance the stability of the market place
Enhanced surveillance capabilities Automated trading rules and
flexible access to trading activity will allow sophisticated
surveillance and assured integrity across the market. AEMI brings
together the best qualities of the electronic market and the
auction market, to deliver the highest quality marketplace.
Slide 10
10 American Stock Exchange 10 American Stock Exchange Visit us
at www.Amex.com Hybrid Market Structure: Best of Both Marketplaces
Orders trade automatically with electronic interest in the book
Price improvement and added liquidity available Routed away if the
best price is not matched or improved Handled in the auction market
if not auto- executable Auto-ex is disabled in limited
circumstances Auction quote published Orders may still enter the
book or be cancelled Specialist gaps the quote for large imbalances
AUTOMATED AUCTION
Slide 11
11 American Stock Exchange 11 American Stock Exchange Visit us
at www.Amex.com Amex Investment Banks Support BB&T Capital
Markets Broadband Capital Management LLC CIBC World Markets
Citigroup Credit Suisse CRT Capital Group LLC Deutsche Bank
Securities Inc. EarlyBirdCapital, Inc. Ferris, Baker Watts, Inc.
I-Bank Securities Lazard Capital Markets Ladenburg Thalmann &
Co, Inc. Lehman Brothers Maxim Group, LLC Merrill Lynch & Co.
Merriman Curhan Ford & Co. Morgan Joseph & Co, Inc.
Oppenheimer & Co. Inc. RBC Capital Markets Rodman &
Renshaw, LLC ThinkEquity Partners LLC UBS Investment Bank Wedbush
Morgan Securities WR Hambrecht + Co Over the last few years a
number of leading investment banks have been advising their clients
from a wide variety of industries, geographies, sizes and
structures that the American Stock Exchanges is the best market to
meet their needs. Leading Global Investment Banks that have
underwritten offerings on the Amex:
Slide 12
12 American Stock Exchange 12 American Stock Exchange Visit us
at www.Amex.com American Stock Exchange IR Alliance SM (AIRA) Amex
AIRA is a proprietary and complimentary investor relations program
that offers: Dedicated Issuer Services Director New on the Amex
updates AIRA communications audit Conferences and Shareholder
Meetings Institutional Investor Meetings World Investor Link
Educational Conferences/Seminars Online Investor Relations
Resources Amex Online Amex.com
Slide 13
13 American Stock Exchange 13 American Stock Exchange Visit us
at www.Amex.com Amex Dual Listing Initiative Amex Management
intends to file a rule proposal with the SEC, whereas all Amex
Initial listings fees will be waived for companies whose securities
are trading on the NASDAQ or those participating in the NASDAQ Dual
Listing program. The Amex believes its specialist-auction market
structure, full service investor relations support, dedicated
Issuer Services director, Amex Online investor database, lower
fees, blue sky exemption, and our state-of-the-art hybrid market
trading system...will make a big difference in the success of
smaller companies.
Slide 14
14 American Stock Exchange 14 American Stock Exchange Visit us
at www.Amex.com Financial Guidelines for Listing Guidelines
Standard 1Standard 2Standard 3Standard 4 Maintenance Standards 4
Pretax income* $750,000N/A Market Capitalization Total Assets*
Total Revenue* N/A $50 million $75 million OR $75 million AND $75
million N/A Market Value of Public Float $3 million$15 million $20
million$1 million Minimum price $3 N/A Operating history N/A2
yearsN/A $2,000,000 Stockholders equity 1 $4,000,000 N/A$4,000,000
$6,000,000 Public stockholders 300 Public float (shares) 3 200,000
Average daily volume N/A Option C: 500,000 Option C: 2,000 Listing
Guidelines Distribution Guidelines 2 Option A : 800 Option B: 400
Option C: 400 Option A: 500,000 Option B: 1,000,000 * The
applicable requirement must be satisfied in either the last fiscal
year or 2 out of 3 most recent fiscal years. 1 Issuers are required
to maintain $2 million in Stockholders Equity if the issuer has
losses in 2 of the most recent 3 years; $4 million if the issuer
has losses in 3 of the most recent 4 years; or $6 million of the
issuer has losses in the 5 most recent fiscal years. 2 Foreign
companies which do not meet the distribution guidelines outlined
above may alternatively qualify with 800 round-lot public
shareholders worldwide, 1,000,000 publicly held shares worldwide
and a $3,000,000 market value of public float worldwide. 3 Public
float is defined as shares that are not held directly or indirectly
by any officer or director of the issuer or by any other person who
is the beneficial owner of more than 10 percent of the total shares
outstanding. 4 A company with several years of losses which is
unable to satisfy the equity requirements, will not be subject to
delisting if it has a market cap of $50 million or total assets and
revenue of $50 million each, and complies with enhanced
distribution criteria including mvpf of $15 million. $2
Slide 15
15 American Stock Exchange 15 American Stock Exchange Visit us
at www.Amex.com [1] The original listing fee for Amex and NYSE is
based on the total number of shares listed, including all shares
issued and outstanding, as well as shares reserved by the Board of
Directors for a specific future issuance. The original fee for
NASDAQ National Market and NASDAQ SmallCap is based on total shares
outstanding and applies to all domestic issuers and only foreign
issuers listing ordinary shares. Fees include one-time initial
listing charges of $5,000 for Amex, $37,500 for NYSE, $5,000 for
NASDAQ National Market, and $5,000 for NASDAQ SmallCap, applied for
the first class of securities listed by an issuer [2] Newly listed
companies are billed the annual fee on a pro-rata basis at the end
of the calendar year in which they are listed [3] NYSE annual fees
payable are the greater of amounts shown under a minimum fee
schedule or a fee applied on a per share basis. Fee ranges shown
here for 25+ million shares represent the maximum amount payable
for each end of the share range shown. [4] The initial fee
component of the original listings fee for common shares is capped
at $250,000, including the $37,500 special charge. [5] Maximum
$500,000 continuing annual listing fee applies to all securities
listed by an issuer, other than derivative products, fixed income
products, and closed-end funds. * Nasdaq National Market Annual Fee
Schedule for ADRs ranges between $ 21,225 and $ 30,000 Comparative
Listing Costs for Foreign Issuers
Slide 16
16 American Stock Exchange 16 American Stock Exchange Visit us
at www.Amex.com The Israeli Experience on the Amex American Israeli
Paper Mills Ltd (AIP) Listed since 1959 Teva Pharmaceutical
Industries Ltd. / IVAX Corporation Merger Ivax listed since 1987,
grew to 8 Billion dollars in market capitalization Mega Merger,
creating the world's largest generic pharmaceutical company.
Gurunet Corporation Successful IPO XFONE, Inc. (XFN)
Slide 17
17 American Stock Exchange 17 American Stock Exchange Visit us
at www.Amex.com Case Study: Ivax Corp. Ivax Pharmaceuticals merged
with Teva creating the largest generic drug company in the world.
This was the largest M&A transaction in Israeli history. Ivax
listed on the Amex in 1987 with a market capitalization of
approximately $100 million and grew to almost $8 billion at the
time of the merger with Teva. Ivax Corp. Amex Listing Date to Date
of Acquisition
Slide 18
18 American Stock Exchange 18 American Stock Exchange Visit us
at www.Amex.com During June 2005, Answers Corp. (GRU) began trading
its shares on the Nasdaq National Market after moving from the
American Stock Exchange. The following case study examines the
performance and trading characteristics of the stock 65 days before
and after transferring. Case Study: Answers Corp (formerly know as
GuruNet) Source: Amex ERDB , FactSet Research Systems, Inc.
*Percent Based on Intraday Volatility Volume Price Results: Answers
Corp. had experienced substantial losses in their volume, liquidity
and price. Trade Spread Liquidit y
Slide 19
19 American Stock Exchange 19 American Stock Exchange Visit us
at www.Amex.com The Amex Advantage Auction Market Fosters Fairness
& Growth Centralized market structure, characterized by
enhanced liquidity, narrower spreads and lower volatility is
conducive to creating, safeguarding and increasing shareholder
value Trading participants compete to achieve best possible prices
Increased access to capital and growth through Blue Sky Exemption
and the protection of a National Exchange listing Broad Range of
Visibility-Enhancing Services Tailored services help companies
attain a heightened profile in the capital markets Support for
building relationships with analysts and investors Frequent
opportunities to bring your story to the markets attention Exchange
professionals, including Issuers Services Directors and Specialists
work together to enhance the attractiveness of listed company
stocks Professional Investor Relations Guidance Guidance from
seasoned IR professionals and assistance for developing or updating
an effective Investor Relations program Educational seminars on a
variety of IR topics
Slide 20
20 American Stock Exchange 20 American Stock Exchange Visit us
at www.Amex.com Contact Information: Senior Vice PresidentHead of
Equities John McGonegal Phone: 212-306-1652 European Managing
Director Robert Wotczak Phone: 212-306-2263 [email protected]
AMEXs consultant in Europe and Israel Amira Bardichev Phone:
+44-7956206270 [email protected] Account Manager
Catherine Elbe Phone: 212-306-8916 [email protected]