SOLV down $1.00 on heavy trading.
Asensio releases more news.
Source: Asensio & Company
Asensio & Company: Solv-Ex's Latest Form 10Q Reveals
Part of its True State of Affairs
NEW YORK, May 20 /PRNewswire/ -- Asensio & Company today released the following:
On May 14th Solv-Ex Corporation (Nasdaq:SOLV) filed its Form 10Q for the third quarter ended March 31, 1997 with the U.S. Securities and Exchange Commission (``SEC''). In the Form 10Q Solv-Ex admits its plant has only ``primary bitumen extraction equipment,'' does not have use of a clarifier vessel, utilities plant, or natural gas. Solv-Ex also admits that it has not installed a permanent boiler and admits it used ``back-up boilers fired by diesel fuel'' in its failed attempt to continuously produce bitumen. Solv-Ex admits ``that it will be necessary to raise additional capital to complete''even the initial stage construction. On March 31, 1997 Solv-Ex announced that on March 29th oil production had commenced at its new plant. The Form 10Q contains clear proof this statement was a gratuitous lie.
In the Form 10Q Solv-Ex admits that it has requested a ``waiver'' from a ``lender'' related to its ``non-compliance'' with a certain ``debt covenant.'' Solv-Ex also disclosed that the ``lender'' has not
granted the ``waiver.'' On March 13, 1997 Asensio & Company disclosed that Solv-Ex had defaulted on its Deutsche Bank loan. Solv-Ex denied being in default.
The fraudulent claims described above of indisputable facts are examples of the extent of Solv-Ex management's immense willingness to make false statements specifically designed to mislead investors. These false statements include Solv-Ex's repeated absurd insistence that it is not under investigation by the SEC.
The Form 10Q provides a clear description of how Solv-Ex profits directly from its fraudulent stock promotion schemes. The Form 10Q shows that by March 31st its entire November 15, 1996 off-shore placement had been converted into 1,090,427 freely traded shares of Solv-Ex common stock. All of these newly created shares can be sold into the U.S. market to U.S. retail investors without ever filing a registration statement or giving notice to shareholders. It is important to note that in March, while Mr. Rendall was vehemently and falsely claiming that Solv-Ex would begin continuous production of bitumen by the end of the month, a total of 667,264 new freely trading
unregistered Solv-Ex shares were created.
The above is a summary of Asensio & Company, Inc.'s complete analysis of Solv-Ex's March 31, 1997 Form 10Q, which will be available tomorrow on the Internet at www.asensio.com. |
