VLI-v...in the news:
VisuaLABS board changes following $1-million financing
Wed 28 Nov 2001
News Release
Mr. John Kendall reports
VisuaLABS has changed its board of directors in conjunction with a private
placement equity offering of four million common shares at 25 cents per
share for total proceeds of $1-million. The sole subscriber to the private
placement was Quest Ventures Ltd.
A. Murray Sinclair, Brian E. Bayley, John Fleming and Glenn McCowan, the
chief financial officer of the corporation, have joined the board of
directors. Alan Jones, Eldon Smith, Luther Haave and Philip Lapp have
resigned from the board of directors of the corporation. Mr. McCowan will
remain as chief financial officer and John Kendall will remain on the board
of directors and continue to act as chief executive officer of the
corporation. The board of directors of the corporation therefore now
consists of John Kendall, Glenn McCowan, A. Murray Sinclair, Brian E.
Bayley, John Fleming, Sheldon Zelitt and Joy Zelitt.
Quest Ventures Ltd. is owned and operated by Mr. Sinclair and Mr. Bayley.
Quest Ventures Ltd. is based in Vancouver, B.C., and is engaged primarily
in the business of merchant banking.
Under the new board of directors, the corporation intends to call a
shareholders meeting as soon as possible, where it intends to present to
the shareholders a proposal to change the business of the corporation to an
investment corporation. Details of the investment parameters proposed for
the corporation will be set out in an information circular to be provided
in relation to the proposed meeting. Additionally, the directors may also
propose a change of name of the corporation.
The corporation continues to pursue claims against its former chief
executive officer and is in settlement discussions. Although the new board
supports continuation of the settlement discussions, there is no assurance
that settlement discussions will be successful.
The corporation's efforts to reduce overhead expenses are also continuing
and in this regard it has successfully negotiated settlements with certain
employees who would have otherwise remained on the corporation's payroll
throughout a period of working notice. The corporation now has six
employees. Efforts to sublease or assign the corporation's office, lab and
operating space in northeast Calgary are continuing.
The corporation's legal counsel has now received the final report from
Deloitte & Touche Inc. as to the results of its forensic audit and the
status of the corporation's technologies. Such report has been prepared for
the corporation's legal counsel in connection with the litigation by the
corporation against its former chief executive officer, and therefore is
subject to solicitor-client privilege, and it is not currently proposed to
release the report itself. However, based on the findings in the Deloitte &
Touche report, it is clear that the corporation's 3-D and grout-free
technologies will not have any meaningful value in the hands of the
corporation going forward. |
