Friday February 4, 3:00 pm Eastern Time
Company Press Release
SOURCE: Planet City Corp.
Planet City to Rescind Acquisition
SEDONA, Ariz., Feb. 4 /PRNewswire/ -- Planet City Corp. (OTC Bulletin Board: PINC - news) announced today that it intends to rescind its agreement to acquire Topology Systems, Inc. (TSI) of Chicago, Illinois. A Letter Of Intent (LOI) to acquire the privately held company was announced on October 5, 1999. The completed acquisition agreement was announced on December 3, 1999.
As a result of the acquisition, Planet City was to have acquired all of TSI's assets, including staff, licensing agreements, third party alliances, Accounts Receivable exceeding $300,000, and certain other financial agreements that were under non-disclosure at the time of the LOI and the acquisition.
Planet City is claiming material misrepresentation of facts by TSI's management. ``Accounts Receivable amounts and short term cash flow projections were grossly inflated, a key licensing agreement had expired, and relationships with third party alliances were not as claimed,' said Terry Dennis, President & CEO of Planet City. ``Exaggerated claims were made throughout the initial acquisition discussions and the discovery phase of the acquisition process. Finally, an internal dispute among the TSI officers and senior staff erupted a few days after the acquisition agreement completion. TSI's own internal investigation into their CEO's actions immediately following the completion led to discovery of other questionable actions he had performed in the months prior to the acquisition. Their CEO refused to relinquish his position, thus denying other TSI officers and senior staff the opportunity to resolve the issues and move forward. As a result, TSI's senior management could no longer work together as a team. The acquisition ceased to be of value to us.'
Planet City will seek recovery of monies advanced to TSI in connection with the acquisition. ``Planet City will vigorously protect our shareholders' interest in this matter, and will take legal action if necessary,' said Dennis.
In a related matter, certain members of TSI's Board Of Directors, employees, and shareholders state they intend to undertake legal action against TSI's CEO, Mr. Antonio A. Burketh, for misappropriation of TSI funds. They have also reviewed and approved the contents of this news release.
For further information call:
1-877-840-PINC (7462)
Certain of the statements contained herein which are not historical facts are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. Any such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.
SOURCE: Planet City Corp.
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