The Company's litigation in British Columbia is proceeding. The Defendants Shafiq Nazerali, Nelson Skalbania, Pacific International Securities, Inc., Carlo Rahal, J.C. Hauchecorne and IKON Ventures, Inc. have appeared. The Defendants Nazerali, Skalbania, Pacific International Securities, Inc., Rahal and Hauchecorne have filed statements of defence. Substitutional service orders have been obtained as against the Defendants Skalbania and Dusan Vucelic. Skalbania evaded service and Vucelic could not be located. The Defendant Shafiq Nazerali is in default of his obligation to produce a list of all relevant documents in his possession or control and the Company intends to apply for an order striking his statement of defence if such a list is not produced in the interim. Production of documents is due from the Defendant Skalbania on June 17, 1998. It is expected that depositions of participants in the conspiracy alleged by the Company will start this summer. Full disclosure will be required of all Defendants.
Corsaire Announces That IT Faces A Wrongful Attempt By
MFC Merchant Financial (UK) Ltd. to Secure Corsaire's List of Shareholders
SAN DIEGO, June 17 /PRNewswire/ -- Corsaire Snowboard, Inc. (OTC Bulletin Board: SNBD) (the "Company") is defending two actions commenced by MFC Merchant Financial (U.K) Ltd. in which MFC is attempting to obtain a list of shareholders, and other corporate information from the Company and in which MFC is challenging the validity of the shareholdings of the Company's president, Mr. Rene Hamouth. In a conference held on June 15, 1998, the Chancery Court of the State of Delaware did not set early discovery and trial dates in advance of the Company's next annual meeting currently scheduled for August 4, 1998, as had been requested by MFC. A further hearing on this matter was preliminarily scheduled for July 29, 1998 at which time it may be heard by the Chancery Court of the State of Delaware. The Company believes that this application will be dismissed because it is not supported by any legitimate corporate purpose.
MFC purchased 1,000 shares in the capital of the Company on March 27, 1998 at a price of less than $1.00 per share and has launched an expensive web of litigation in Delaware. The Company believes that MFC's negligible and recent shareholding position is not the true ground upon which Delaware litigation has been commenced. The Company believes that MFC is attempting to strip control of the Company from its president Rene Hamouth prior to the Company's annual meeting currently scheduled for August 4, 1998 in order to ultimately prevent the Company from pursuing its British Columbia litigation described in the Company's press release dated March 9, 1998.
The Company's litigation in British Columbia is proceeding. The Defendants Shafiq Nazerali, Nelson Skalbania, Pacific International Securities, Inc., Carlo Rahal, J.C. Hauchecorne and IKON Ventures, Inc. have appeared. The Defendants Nazerali, Skalbania, Pacific International Securities, Inc., Rahal and Hauchecorne have filed statements of defence. Substitutional service orders have been obtained as against the Defendants Skalbania and Dusan Vucelic. Skalbania evaded service and Vucelic could not be located. The Defendant Shafiq Nazerali is in default of his obligation to produce a list of all relevant documents in his possession or control and the Company intends to apply for an order striking his statement of defence if such a list is not produced in the interim. Production of documents is due from the Defendant Skalbania on June 17, 1998. It is expected that depositions of participants in the conspiracy alleged by the Company will start this summer. Full disclosure will be required of all Defendants.
The Company's British Columbia lawsuit is based on the allegation that Corsaire entered in an agreement with Dr. Dusan Vucelic to purchase certain assets relating to the operation of the business of Zeolite Mira, s.r.l. in December 1996, and a joint venture with Shafiq Nazerali with respect to, among other things, the financing of the purchase. The 26 page statement of Claim alleges, among other things, that Corsaire's representative Nelson Skalbania, a British Columbia businessman and Shafiq Nazerali a Vancouver resident, breached their respective fiduciary duties to the Company and conspired with Dr. Vucelic, who owned or controlled the Zeolite Mira Property to deprive Corsaire of the corporate opportunity to acquire the Zeolite Mira Property (the "Opportunity") and to divert the Opportunity to IKON Ventures, Inc., an entity which they and their associates directly or indirectly controlled.
The Statement of Claim also alleges that Nazerali, Skalbania and others were involved in conducting unlawful insider trading in the shares of Corsaire IKON during a period between the initial purchase agreement and the date that it was announced that the Opportunity had in fact been acquired by IKON Ventures, Inc.
The relationship between MFC and the Defendants in the Company's British Columbia lawsuit is under investigation. SOURCE Corsaire Snowboard, Inc.
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