From ADI web site:
Arlington Heights, Illinois, 1 April, 1999 for immediate release....... ADI Technologies, Inc., (ADI) wishes to inform its investors and shareholders that on March 12, 1999 at 6:30 PM (CST) the Company received first notice from its Vancouver, British Columbia solicitor that the British Columbia Securities Commission (BCSC) had issued a Cease Trade Order against ADI. The Company was unaware of any concerns that had arisen at the BCSC and was never advised of any such concern. Over the term of the Company's long relationship with the BCSC, any instances of deficiencies or discrepancies brought to the attention of the Company have been resolved. All issues raised by the
BCSC have now been addressed. We regret any shareholder's concern that may have arisen as a result of this action.
Nonetheless, during this period, the Company's product development work has continued to proceed. Receipt of the last test suite component has been received by the Company and functional verification of the Apogee D-2 chip is progressing. We anticipate a general results report will be issued in a news release within the next three to four weeks. As shareholders were made aware by the Company's news release of October 12, 1998, the fabrication and manufacturing tests conducted by IBM were completed and subsequent delivery of the prototype sample chips was received. The Company continues to stay in contact with its potential OEM customers and remains positive in its sales outlooks for 1999.
With the functional verification of the Apogee D-2 chip underway, certain embedded functions of the Multimedia Interactive Video technology (MIV), will be evaluated as to marketability and technical viability. As was previously announced in September 1997, but not yet concluded, an acquisition from Perkins Engineering of the MIV technology which is believed to be a significant technological advancement for the promotion of interactive video use in commercial,
educational, and entertainment fields, but its marketability with the Company's Apogee D-2 chip is yet to be determined. Upon conclusion of chip testing, the Company will formally announce its elective to either cancel or reactivate acquisition discussions.
The Company wants to clarify that some earlier news releases have referenced NASDAQ trading whereas the Company is in fact traded on the National Quotation Bureau pink sheets under trading symbol ADIKF, not NASDAQ. In addition, the Annual Information Form referred to a value of the Company's patents based upon an independent report as having a potential value of approximately US$41,000,000. At the present time, in current market conditions, the value of the patents is to be considered indeterminate.
The Company also wants to clarify that its agreement with Cadence Design Systems Inc. has not yet received final regulatory approval. Under the agreement, Cadence has the right to assume a 10% equity position in the Company as constituted on May 16, 1996. The equity entitlement is by way of the issuance of a non-transferable share purchase warrant for 2,242,694 common share exercisable at CDN$2.98 per share. There was under the agreement a 5% bonus payable in shares to Cadence if certain milestones were met. These milestones were not met and the bonus will not be payable.
Again, the Company regrets any undue concern that may have resulted from the British Columbia Securities Commission actions, but wishes to assure all concerned shareholders that all necessary internal changes to the Company's reporting systems have been made and any external resources that may become necessary to continue efficient reporting will be contracted.
On behalf of the Board of Directors,
Jean Monroe,
Chairman & CEO
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