Jersey Update - Tidelands Deal Dead.
Two suits filed over failed Tidelands RTO
Jersey Petroleum Inc JPI
Shares issued 18,450,644 Jun 4 close $0.18
Fri 23 Oct 98 Street Wire
by Brent Mudry
Jersey Petroleum's proposed $11.22-million reverse takeover of Tidelands
Gas and Tidelands Oil appears to be off, according to two suits filed
Thursday in the Supreme Court of British Columbia. In the first suit, an
endorsed writ of summons, Jersey claims unspecified damages for breach of
contract and assorted other claims. Jersey claims the two Texas companies,
principals Royis and Michael Ward and minority shareholders breached the
acquisition agreement dated June 24 and the amended agreement dated Oct. 6.
The suit also claims damages for breaches of warranty and duty of good
faith, against these defendants. In addition, Jersey claims Ahmmed and
Sidru Karim, both of Vancouver, interfered with the contract by inducing
the breaches.
In the second suit, also an endorsed writ filed by Vancouver lawyer David
Lunny, Jersey seeks repayment of a US$157,229 debenture by Tidelands Oil
and Tidelands Gas. Mr. Lunny told Stockwatch he expects to file statements
of claim early next month, after appearances are filed by the defendants.
Statements of defence have not yet been filed. Jersey disclosed on June 8
its proposed purchase of the two companies, both based in Corpus Christi,
for up to 66 million pre-consolidation shares. The deal was valued at
$11.22-million, based on a pre-consolidation value of 17 cents per share.
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