Innovacom CEO resigns after one month on the job.........
newsalert.com
InnovaCom CEO Resigns
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 8, 1998--InnovaCom, Inc., (OTC/BB:MPEG) announced today that
Thomas E. Burke, the Company's recently hired chief executive officer, resigned from his position after the close of the market
on Friday, June 5, 1998. Mr. Burke was with the Company for only a month before his resignation. Mark C. Koz, the
company chief technical officer and chairman of the board, will act as the company's chief executive officer until the board of
directors officially fills the position.
It is uncertain what effect Mr. Burke's resignation will have on the company's financial condition. Mr. Burke has "reserved his
rights" under his employment agreement for additional compensation, but has not yet claimed any severance payment provided
for in the agreement. If Mr. Burke makes a claim for a severance payment, it will likely be in an amount exceeding the
company's available cash and may have a material adverse affect on the company's financial condition and results of operation.
Mr. Burke contends that the company was obligated to obtain a letter of credit of $1 million to secure the company's
obligations under his employment agreement. During Mr. Burke's tenure as chief executive officer, the company continued to
experience delays in the funding of its next $5 million in capital requirements. The company is currently seeking sources for its
next $5 million in capital in order to continue operations and its efforts to bring its system products to the marketplace.
InnovaCom is located at 3400 Garrett Drive, Santa Clara, Calif. 95054. Investor Relations telephone number is
408/727-2447.
CONTACT: InnovaCom
Investor Relations, 408/727-2447
MORE...........
CBSM
06/08 08:52
INNOVACOM SAYS NEW CEO THOMAS
BURKE RESIGNS.
CBSM
06/08 08:52
INNOVACOM SAYS UNCERTAIN OF
FINANCIAL IMPACT OF RESIGNATION.
CBSM
06/08 08:52
INNOVACOM SAYS SEVERANCE CLAIM
MIGHT EXCEED AVAILABLE CASH. |
