David
Any idea what to make of this?
Zmax Corp. Also Named in Finder's Fee Litigation
WASHINGTON--(BUSINESS WIRE)--July 7, 1997--Zmax Corp. (OTC:ZMAX) announced Monday that civil litigation regarding a finder's fee dispute was recently commenced by Atlas Capital Group Ltd. in the Supreme Court of British Columbia, Canada against Shafiq Nazerali, a Zmax shareholder and consultant.
The statement of claim also names Zmax and certain of its investors who are alleged to have some potential interest or obligation regarding the dispute.
Atlas has alleged that it entered into a partnership agreement with Nazerali that entitled Atlas to an equity interest or compensation from Nazerali in connection with Zmax's acquisition of Century Services Inc. (CSI) in November 1996.
In addition to damages and other remedies from Nazerali and perhaps other defendants, Atlas is seeking a judicial declaration that Zmax is the constructive trustee of CSI and the CSI technology for the benefit of Atlas.
Pending further order, the court, without notice or an opportunity to be heard from Zmax and the other defendants, has prohibited the transfer, disposition, encumbrance or other dealing with any of the 2.8 million shares of Zmax issued in September 1996, or any of the proceeds thereof.
Zmax and its counsel are presently assessing the allegations and the company has not been served with the Statement of Claim. Zmax has moved to lift any prohibition as to itself. Unless lifted, this order may restrict the ability of Zmax to proceed with its previously announced recapitalization and may reduce the liquidity of Zmax common stock by restricting the transfer of certain securities.
``Neither Zmax nor CSI are aware of any mention, suggestion or allegations that Atlas had any interest in the CSI business
opportunity,'' stated Michael C. Higgins, president and chief executive officer of Zmax. ``As one of the founders and former
principal shareholders of CSI, I can confirm that Atlas had no discussions with CSI regarding an acquisition, and this appears
to be a dispute among parties other than Zmax.''
Samuel |
