PDCI news:
Thursday October 1, 9:38 am Eastern Time
Company Press Release
PDC Innovative Industries Inc. Announces Scheduled Court Hearing
to Investigate PDCI Claim of Rights to Recover 1,200,000 Shares After Alleged Fraud
CORAL SPRINGS, Fla.--(BUSINESS WIRE)--Oct. 1, 1998--PDC Innovative Industries (OTC BB:PDCI - news) announced Thursday that a court hearing has been scheduled the first week in December 1998 to hear a PDCI complaint against a promotional company and Toronto Brokerage
Firm who allegedly misrepresented their abilities after receiving 1,200,000 shares of PDCI stock.
PDCI management has claimed breach of contract and fraud against Power Media Group, Arlington, Ill. and Rampart Securities/Merit Investment Corp., Toronto. PDCI and Power Media Group signed agreements of funding and promotion in early August 1998 with a schedule that would make funds available immediately and continue to provide financing or funding which would total to $1,750,000 within 90 days. PDCI contends that neither the funding or the promotion schedule was accomplished,
forcing PDCI to accept alternate financing through a Latin American Group. Further, Power Media Group allowed Rampart Securities to sell or dispose of 1,200,000 PDCI shares in violation of a restriction agreement that shares could not be sold before 90 days, and then only with PDCI permission. Management stated that documentation overwhelmingly supports the PDCI claim.
The action against Power Media Group and Rampart Securities/Merit Investment was detailed in a 27 page document presented to the court last week, specifying alleged violations and broken agreements.
During a phone call last month, PDCI management stated that a Rampart Securities attorney informed them that ''the shares had been sold,'' contrary to a report from Power Media Group, the recipient of the shares, that none of the shares had been sold by them.
Consultants have informed the company, PDCI Management said, that if the 1,200,000 shares have been sold as alleged, it would account for the negative effect to PDCI shares that resulted after two months of extremely high trading volume.
According to official information, delivery has not been made against the shares sold, the company was told. The position taken by PDCI is that the court action in effect will restrain the depository agency holding the shares from moving the stock until the issue of contract breach is settled. The company further stated they expect that the 1,200,000 shares will remain locked up during litigation while management works toward settlement within the rules and the law.
Contact:
PDC Innovative Industries Inc., Coral Springs
Mike Hiler
954/341-0092, Fax 954/341-5361 |
