Greetings All!
I noticed that no one has posted the release relating to the action filed. This should set your mind at ease re: the debentures.
News Release - May 15, 1997
COLOSSAL RESOURCES CORP. SUSPENDS CONVERSION OF CONVERTIBLE DEBENTURES AND FILES SUIT TO VOID ITS CONVERSION OBLIGATIONS AND RECOVER DAMAGES
Colossal Resources Corp. ("Colossal") announced today that it has commenced a lawsuit in U.S. District Court, Southern District of New York against a financial advisor and 18 other named individuals and companies who hold debentures which are convertible into common stock of Colossal. The suit alleges, among other claims, breaches of securities laws and contract, and arises from various Regulation S Subscription Agreements and Debenture purchases arranged by the financial advisor.
Since defendants' purchase of debentures there has been a dramatic fall in the price of Colossal's shares as debenture holders began their conversions. Upon investigation, Colossal believes that certain debenture holders have engaged in a pattern of short selling and price manipulation. Colossal has suspended conversion of the debentures and filed its suit to void its conversion obligations and recover damages.
According to Dilbagh Gujral, President of Colossal, "Management believes this action is in the best interest of the Company and its shareholders."
Employing smelting technology developed in South Africa, Colossal, through its 60% Zambian subsidiary, recovers a Cobalt/Iron/Copper mixed alloy in granular form from slag found in the Zambia Copper Consolidated Mines Nkana Slag Dump located near Kitwae in Zambia. Cobalt is a strategic metal used in high technology applications like jet engines, super alloys, computers, advanced batteries, magnets, carbide cutting tools, dryers, and chemicals.
Colossal though a South African subsidiary also owns a modern hydrometallurgical processing plant for the treating of cobalt-containing materials at Brakpan, South Africa. Commercial sales of Cobalt-containing granules from production activities continue to customers in South Africa, Europe an Asia.
Dated at Vancouver, British Columbia May 15, 1997.
George Keir
The Vancouver Stock Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the contents of this News Release. |
