International Absorbents Suspends Talks With First Empire International And Cancels Extraordinary General Meeting
BELLINGHAM, WA, May 12, 1997... International Absorbents Inc. (OTC: IABSF), announced today that the Company has suspended its previously announced discussions to acquire First Empire International Limited, a holding company with timber assets in Fiji. The two companies had signed a letter of intent in April.
Gordon Ellis, Chairman of International Absorbents commented, "As a result of senior management's investigations in Fiji, particularly First Empire's short-term funding requirements, and considering the recent trading price of the Company's shares, the Board determined that funding First Empire will result in unacceptable dilution to existing shareholders."
The Company also announced today that as a result of Nasdaq's May 1
decision to delist the Company's stock from the Nasdaq SmallCap market, it has canceled an Extraordinary General Meeting of shareholders scheduled for May 16. The purpose of the meeting was largely to approve a consolidation of International Absorbents' stock on a 1:5 basis to satisfy Nasdaq's minimum bid requirement for continued listing.
International Absorbents Inc. is a holding company that through its
wholly-owned subsidiary, Absorption Corp., develops, manufactures and
markets patented and proprietary, cost-effective sorbent products derived from waste wood fiber. These environmentally safe products outperform conventional products used in a broad range of industrial and consumer applications, including oil and hazardous liquid spill cleanup and control, oil/water filtration, packaging and commercial/retail animal bedding and litter.
Further information about International Absorbents is available at
www.absorbent.com.
Contact:
Charles (Chuck) Tait
International Absorbents Inc.
(604) 681-6181
This press release may contain forward-looking statements with respect to the operations and business of the Company that involves risks and
uncertainties. These risks and uncertainties are detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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