SMEK/POLU Update
SMARTEK, INC. REPORTS ON EVENTS SURROUNDING RECENT TRADING SUSPE
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NEW YORK, March 12 /PRNewswire/ -- The management of Smartek, Inc.
(OTC Bulletin Board: SMEK) offers the following comments regarding the recent trading suspension in the Company's stock and discloses recent business developments.
On January 29, 1999, the Securities and Exchange Commission (SEC) issued a mandatory ten day suspension in the trading of the Company's securities. The SEC reason for the suspension was that there were questions raised as to the adequacy and accuracy of publicly disseminated information concerning, among other things, the business prospects and future earnings of the Company. The SEC also issued a subpoena in which it requested certain records in connection with a private investigation. Polus, Inc., (OTC Bulletin Board: POLU), Smartek's largest shareholder, was also issued a mandatory ten day suspension by the SEC.
Immediately following the suspension, the Company hired special council to assist in responding to the SEC subpoena, to which the Company has responded. At 11:59 PM on February 11th, the trading suspension expired and no further suspension orders were issued. To facilitate the market makers compliance with certain securities law requirements, the Company voluntarily forwarded an updated disclosure statement to known market makers. Prior to January 29, 1999, shares of the Company's common stock were traded on the Over the Counter Electronic Bulletin Board (OTCBB). To the best of the Company's knowledge, the Company's shares presently are trading on the pink sheets. Shareholders can receive a quote and execute trades by
contacting a stockbroker and informing them that the Company is trading on the pink sheets. The Company is investigating whether its securities will resume trading on the OTCBB.
Subsequent to the trading suspension, Ryans Express Equities Corporation (Ryans), a mortgage banking firm that was in negotiations to merge into the Company, has expressed their desire to delay the merger pending the outcome of the SEC's investigation of the Company. Management of both Companies have agreed that any ongoing due diligence regarding the merger, would have to address any concerns arising from the SEC. The Company will cooperate fully with Ryans and the SEC to help facilitate the merger.
Plans to move forward with the business involving the Scott Hill
Collection, Inc., the Company's wholly owned subsidiary, have been terminated. The Scott Hill Collection, an upscale collection of menswear clothing, was designed and created during the Spring of 1998. The collection was launched during the Summer of 1998, and displayed in a New York City showroom. Shortly thereafter Scott Hill, the primary principal in the business, abruptly decided to abandon the plans for the Scott Hill Collection, and pursued business interests elsewhere. The Company has released Scott Hill from any further
business responsibility other than Scott Hill agreeing to pay for any and all debt incurred by the Scott Hill Collection, Inc.
SOURCE Smartek, Inc.
CONTACT: Thomas Telegades of Smartek, Inc., 212-355-2585 |
