.MERL Holdings Inc.Com Issues a Corrective Press Release to Settle Contempt Motion Filed by The SEC
TRENTON, N.J.--(BUSINESS WIRE)--April 28, 2004--MERL Holdings Inc.com is issuing this corrective press release as part of a settlement of a motion brought by the Securities and Exchange Commission seeking to have MERL held in civil contempt for failure to obey a permanent antifraud injunction entered by the United States District Court for the District of New Jersey. As part of the settlement, the Court entered a finding that MERL's false and misleading statements and omissions in three press releases violated the injunction. Without admitting or denying the SEC's allegations, MERL consented to the entry of a finding of civil contempt against it and agreed to issue this corrective press release. MERL is a holding company that is quoted on the OTC Pink Sheets under the symbol "MRLE."
The corrections relate to the following press releases:
-- On August 1, 2003, MERL issued a press release announcing that it had entered into a software licensing agreement with Heritage Capital Credit Corporation. The press release omitted to state that Heritage is a wholly owned subsidiary of MERL Financial Group, Inc. which, in turn, is controlled by the same individuals who hold a controlling interest in MERL.
-- On September 5, 2003, MERL issued a press release announcing that it had received a $50 million financing proposal from a private equity fund. In fact, the private equity fund had withdrawn the financing proposal on August 28, 2003.
-- On November 10, 2003, MERL issued a press release announcing that it had signed a $50 million letter of interest. In fact, the investment banking firm that issued the letter of interest had not yet begun its formal due diligence of MERL, and the letter of interest was subject to a number of significant conditions in addition to extensive due diligence. The November 10 press release described the investment banking firm as "an investor," but in fact the firm's role was going to be to attempt to raise $50 million among its investors. This was a best efforts proposal only, meaning that there was no assurance that the investment banking firm could raise all or any portion of the $50 million for MERL.
Contacts
MERL Holdings Inc.Com
G. Carol Johnson, 609-333-0221 |
