APTX News out..
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Tuesday May 26, 1:18 pm Eastern Time
Company Press Release
Apparel Technologies, Inc. Terminates Investment Banking
Relationship With First Fidelity Capital, Inc.
COMMERCE, Calif.--(BUSINESS WIRE)--May 26, 1998--APPAREL
TECHNOLOGIES, INC.
(NASDAQ:APTX - news) announced today that it has terminated its investment
banking relationship with First
Fidelity Capital, Inc. The Company's Board of Directors unanimously elected to
terminate the relationship as a
result of serious breaches by First Fidelity of its agreement with APTX, including its
failure to honor funding
commitments at the times and in the amounts agreed to be provided by First Fidelity,
dissemination of confidential
non-public information to third parties, and conflicts of interest resulting from its
representation of other investors.
The investment banking relationship was originally entered into in April 1997 by the
Company's former
management under what was to be a five year exclusive agreement.
According to Kathryn Van Ness, the Company's President and Chief Executive Officer:
''Our revenues for
March and April 1998 exceeded the Company's revenues for the prior six months
ended February 28, 1998, as
a result of the commencement of digital production activity in March. However, the
recent delay in funding has
impacted the Company's production activity in May 1998. We expect that the $2.0
million debt financing
concluded last week will allow APTX to resume its growth.''
The Company is presently engaged in discussions with third parties to obtain new
sources of working capital,
which may include debt and equity financings, joint ventures and licensing arrangements.
Apparel Technologies, Inc. provides advanced proprietary technology for digital fabric
printing, manufactures
apparel for leading national retailers and designs and installs state-of-the-art retail
fixtures.
Except for historical matters contained herein, the matters discussed in this press release
are forward-looking
statements and are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of
1995. These forward-looking statements reflect assumptions and involve risks and
uncertainties which may affect
Apparel Technologies, Inc.'s business and prospects and cause actual results to differ
materially from these
forward-looking statements.
Contact:
Kathryn Van Ness
President & CEO
(213) 725-4955 |
