Wednesday May 9, 1:31 pm Eastern Time
Press Release
Elite Technologies Announces Improper Sale of Stock
ATLANTA--(BUSINESS WIRE)--May 9, 2001--Elite Technologies Inc. (OTCBB:ETCH - news) announced today that it has discovered what it believes to be an improper sale of its common stock by Knight Securities of Jersey City, N.J., into the marketplace. The transaction which Elite has questioned involves two million shares (2,000,000) of its common stock.
Scott Schuster, chairman of Elite, stated, ``We discovered that Knight Securities performed a transaction which Elite believes was shown in the marketplace as a sale against a restricted stock certificate on deposit with their firm. Elite intends to pursue this matter with all vigor.''
Alexander Kuhne, attorney for Elite Technologies, stated, ``This is the second instance where a broker dealer has transacted against a restricted stock certificate that was not eligible. We are in discussions with Knight, and should we not reach a satisfactory arrangement, Elite intends to pursue all civil and regulatory remedies available to it regarding this unusually large transaction.''
A firm or individual may not sell restricted stock issued under Rule 144 in the open market without meeting certain criteria to render the stock eligible for sale. Among the criteria are that the holder possess the stock for a minimum of one year, or that the stock must be registered by the company in a registration statement filed with Securities and Exchange Commission. The stock in question was not a year old at the time of the transaction and, therefore, the company believes that the stock in no manner meets the criteria, nor did the company approve of any part of this transaction.
Notice: This release and oral statements made from time to time by company representatives concerning the same subject matter may contain so-called ``forward-looking statements.'' These statements can be identified as ``forecasts,'' ``projects,'' or words of similar meaning and by the fact that the statements frequently are used in discussing regulatory submissions and approvals, development programs, etc. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance upon those statements.
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Contact:
Rapid Release Research, LLC, Houston
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