Thursday, October 15, 1998
AirWorks eyes suit settlement
By TIMOTHY LE RICHE, EDMONTON SUN
Music software maker AirWorks Media Inc. could settle a
multimillion-dollar lawsuit for $150,000 and equity, shareholders
were told yesterday.
Shareholders of the beleaguered Edmonton firm, which has been
fighting for its life for most of the year, picked a new six-member
board of directors.
Chairman and CEO Cheryl Knebel was re-elected. She said she
has worked unpaid since January.
About 55 people attended AirWorks' annual general meeting
yesterday, eager to know how the company will change its tune
and when its shares will trade again on the Alberta Stock
Exchange.
The company's shares stopped trading in June at 19 cents after
reaching a high of $1.60 a year earlier.
Knebel is working to settle a $6.3-million wrongful dismissal suit
from company founders Darryl and Nancy Goede, launched in
March. AirWorks filed an $11-million countersuit.
"We know what the Goedes would like," Knebel reported. "One
of the points is cash that we don't have at the moment. The
worst-case scenario is $150,000."
AirWorks is now focused on a $1.5-million debenture issue.
"The obstacle for trading is financing, and then to demonstrate we
can fulfil our business plan," Knebel told the group.
A cash injection would give AirWorks priority with regulators,
she said.
AirWorks has cut spending and staff to the bone, and revenues
now are about $30,000 a quarter, said Knebel.
The Alberta Securities Commission halted AirWorks trading
when it failed to file financial statements. The papers were filed in
early July, showing a $3.5-million 1997 loss.
New director Jeffery Seitz of Saskatoon told The Edmonton Sun
he represents a group interested in acquiring AirWorks, but he
refused to say more.
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