here's what started the momentum; (BTW, thread is bookmarked;-))
(BUSINESS WIRE via COMTEX) -- ChatCom
Inc. (OTC BB:CHAT), a 12-year veteran in the highly competitive server
arena, has entered into an agreement with James P. Roche, whereby Roche
will provide new financing for the company.
Roche has agreed, subject to certain conditions, to provide, up to $600,
000 in financing to the company over the next 30 days in the form of
loans that Roche will have the option to convert into majority
ownership of the company's common stock.
Roche will become a director and chief executive officer of the
company. Roche is an investor in more than 30 companies in Silicon
Valley and is currently on the Board of Directors of four companies. He
spent 10 years with IBM in sales and marketing and holds a J.D. degree
in law.
"I have interacted with Mr. Roche over the past year, as he has
familiarized himself with company's business, and will provide him with
my assistance in working toward a smooth transition," said E. Carey
Walters, former CEO.
"Carey Walters is to be congratulated for the exemplary job he has done
in managing ChatCom over the past year under extremely difficult
circumstances. Mr. Walters now plans to pursue other activities, and we
wish him well in his future endeavors," said Roche.
"ChatCom has had problems in the past, but I feel confident with the
support of the excellent customers, employees, creditors, vendors and
some of my business acquaintances, we will be able to position ChatCom
among the leaders in the server marketplace." Roche went on to say, "I
recognize there are potential claims and suits against the company, but
I do not feel they will adversely affect my efforts in helping ChatCom
reach profitability in the future."
Since mid-May, ChatCom has been funded by asset-based lender ALCO
Financial Services, its lead secured creditor, after the board's
decision to enter into an assignment for the benefit of creditors.
Statements contained in this news release that are not historical facts
are forward-looking statements under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Although the company
believes the expectations reflected in such forward-looking statements
are based upon reasonable assumptions, it can give no assurances that
its expectations will be attained. Forward-looking statements involve
known and unknown risks that could cause the company's actual results
to differ materially from expected results, including the need to raise
additional capital and those risks described in the company's various
filings with the Securities and Exchange Commission, including Form 8-K
filed April 1999.
Copyright (C) 1999 Business Wire. All rights reserved.
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