Exhibit 99.3
DPAC Receives Nasdaq Notification of Stock Price Deficiency
GARDEN GROVE, Calif.--(BUSINESS WIRE)--June 27, 2005--DPAC
Technologies Corp. (NASDAQ:DPAC) announced that on June 22, 2005 DPAC
received a Notification of Additional Delinquency from the Nasdaq
Listing Qualifications Hearing Panel indicating that DPAC failed to
meet the bid price requirement in Marketplace Rule 4310(c)(4), which
required DPAC to achieve a minimum bid price of $1.00 per share for at
least ten consecutive trading days by June 20, 2005 in order to
continue its listing on the Nasdaq SmallCap Market. DPAC was
originally notified on June 21, 2004 that the bid price of its common
stock did not comply with Marketplace Rule 4450(a)(5), but was
provided 180 calendar days, or until December 20, 2004 to regain
compliance. Subsequently, on August 4, 2004 DPAC transferred to The
Nasdaq SmallCap Market and as set forth in Marketplace Rule
4310(c)(8)(D), it was afforded the remainder of this market's 180
calendar day compliance period, or until December 20, 2004 to regain
compliance with the minimum $1.00 bid price per share requirement, as
set forth in Marketplace Rule 4310(c)(4). Thereafter, on December 21,
2004 Nasdaq Staff notified the Company that in accordance with
Marketplace Rule 4310(c)(8)(D), the Company was provided an additional
180 calendar days, or until June 20, 2005 to regain compliance with
the $1.00 minimum bid price requirement under Marketplace Rule
4310(c)(4). Nasdaq's Marketplace rules do not provide the Company with
any further compliance periods beyond June 20, 2005.
DPAC has not been delisted pending the outcome of its appeal to
the Nasdaq Listing Qualifications Hearing Panel. On June 16, 2005 DPAC
presented its arguments to a Nasdaq Listing Qualifications Hearings
Panel that the previously announced merger with QuaTech, Inc. will
provide a mechanism to regain compliance with the minimum bid price
and minimum shareholders equity requirements of the Nasdaq SmallCap
Market. The Hearings Panel has not yet rendered a decision in the
appeal.
If DPAC is delisted for any reason, DPAC currently intends to
complete the transaction with QuaTech and that its common stock would
trade on the over-the-counter bulletin board.
About DPAC Technologies
Located in Garden Grove, California, DPAC Technologies provides
embedded wireless networking and connectivity products for
machine-to-machine communication applications. DPAC's wireless
products are used by major OEMs in the transportation, instrumentation
and industrial control, homeland security, medical diagnostics and
logistics markets to provide remote data collection and control. The
Company's web site address is www.dpactech.com. Information concerning
DPAC is filed by DPAC with the SEC and is available on the SEC
web site, www.sec.gov.
About QuaTech
QuaTech, a privately-held company, is an industry performance
leader in device networking and connectivity solutions. Through
design, manufacturing and support, QuaTech maintains the highest
levels of reliability and performance. Satisfied customers include
OEMs, VARs and System Integrators, as well as end-users in many
industries, including banking, retail/POS, access control, building
automation and security, and energy management. QuaTech is a leading
supplier of data connectivity products to financial institutions,
serving five of the top 10 U.S. banks. Founded in 1983 and
headquartered in Hudson, Ohio, QuaTech sells and supports its
solutions both directly and through a global network of resellers and
distributors. www.quatech.com
Forward-Looking Statements
This press release includes forward-looking statements. You can
identify these statements by their forward-looking words such as
"may," "will," "expect," "anticipate," "believe," "guidance,"
"estimate," "intend," predict," and "continue" or similar words or any
connection with any discussion of future events or circumstances or of
management's current estimates or beliefs. Forward-looking statements
are subject to risks and uncertainties, and therefore results may
differ materially from those set forth in those statements. A
transaction as contemplated would require approvals of the Boards of
Directors and shareholders of both parties and numerous other
conditions. Full details of such a transaction will be provided to
DPAC shareholders and filed with the SEC by DPAC as and when
appropriate. There is no assurance possible, and none is intended,
that the transaction will be completed at all or on the terms
described. The transaction is and shall continue to be subject to
numerous conditions and contingencies until the transaction is
completed. DPAC Technologies Corp. will provide further detailed
information to its shareholder as and when required to solicit their
consent. The transaction's costs and diversion of management attention
could negatively impact results. Delisting of our shares could have
adverse effects on the liquidity of trading in the common stock and
the price per share. Other factors that affect DPAC's business and its
ability to conclude a merger transaction include, but are not limited
to, that our Airborne(TM) products are new, that we sell to original
equipment manufacturers for new product introductions by them, and
that all of these are subject to risks and uncertainties regarding new
product introductions such as uncertainty of market acceptance. The
parties need additional financing to complete the transactions as
envisioned. Such financing may not be available on favorable terms.
Also, there can be no assurance that such transaction will be
completed or, if completed, that it will be successful. The
transaction would involve a change of control, in that it is likely
that voting control of DPAC may be given to former shareholders of
QuaTech, and if the principal former shareholders of QuaTech were to
act in concert, they might be able to elect a majority of DPAC's Board
of Directors. Other factors that affect DPAC's business include, but
are not limited to, the degree of market acceptance of our existing
and planned wireless connectivity products, future business
opportunities with these products, protection of licensed technology
or proprietary rights, risks of litigation, our need for additional
financing in order to realize our opportunities, other challenges
related to completing our proposed merger with QuaTech, Inc., further
challenges in subsequently combining our operations with QuaTech,
Inc.'s own, and general market and economic conditions. More
information about the risks and challenges faced by DPAC Technologies
Corp. is contained in the Securities and Exchange Commission filings
made by the Company on Form 10-K, 10-Q and 8-K. DPAC Technologies
Corp. specifically disclaims any obligation to update or revise any
forward-looking statements whether as a result of new information,
future developments or otherwise.
Additional Information:
This news release is neither a solicitation of any proxies nor an
offer of any securities of any kind whatsoever. No securities
mentioned herein have been registered or authorized or approved by any
federal or state securities regulator or commission.
CONTACT: DPAC Technologies Corp.
Stephen Vukadinovich, 714-898-0007
Steve.Vukadinovich@dpactech.com
or
Kim Early, 714-898-0007
Kim.Early@dpactech.com