Xillix Technologies Corp -
Globe says Xillix admits its future is in jeopardy
Xillix Technologies Corp
XLX
Shares issued 31,786,474
1999-07-22 close $0.53
Friday Jul 23 1999
The Globe and Mail reports in its Friday edition that the shares of Xillix
Technologies Corp. lost nearly half their value yesterday as the medical imaging
company admitted that its survival is in jeopardy as a result of a patent dispute
with its joint-venture partner, Olympus Optical Co. of Japan. The technology
company, based in Richmond, B.C., said it is taking Olympus to arbitration in
Japan, alleging "misrepresentation, breach of duty to act in good faith, and misuse
of trade secrets." While the proceedings will follow Japanese rules, Xillix said the
interpretation of the joint-ventures agreement and any remedies will be determined
by British Columbia law. President and chief executive officer Pierre Leduc also
said Xillix is prepared to endure whatever is necessary to challenge Olympus.
"That includes looking at expenditures, restructuring the company and preparing
for the worst," he said. The company will consider closing facilities and staff
layoffs as part of any restructuring. Xillix employs 55 people. Xillix's technology
consists of introducing "blue light" into the lungs that helps physicians diagnose
early-stage lung cancer.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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