MCDI IS KAPUT!!!!!!!
Markatech has difference of opinion with MCDI
Markatech Industries Corporation MKD
Shares issued 8,841,149 Nov 17 close $0.12
Fri 23 Apr 99 News Release
Mr. Douglas McLean reports
Following suspension of trading in Markatech's shares on Nov. 27, 1998,
Markatech representatives met with and responded in writing to the
Vancouver Stock Exchange's enquiries regarding the affairs of the company,
actions taken by its management and the pending acquisition of a 60 per
cent interest in MCDI Compact Disc.
On Jan. 8, 1999, MCDI advised Markatech that it wished to renegotiate the
acquisition agreement dated March 5, 1998, whereby Markatech was to acquire
a 60 per cent interest in MCDI. MCDI indicated that it would prefer an
arrangement where Markatech would purchase a 100 per cent interest in MCDI.
In January and February 1999, Markatech provided MCDI with three separate
acquisition proposals which met MCDI's concerns. Markatech did not receive
a bona fide response to any of these proposals.
During the course of negotiations, MCDI proposed that Markatech's president
surrender 200 shares of MCDI, representing one-third of MCDI's issued
common share capital. Markatech, being the beneficial owner of these
shares, rejected MCDI's proposal. MCDI subsequently advised the exchange
that it had terminated its agreement dated March 5, 1998, with Markatech.
On April 5, 1999, MCDI requested that Markatech provide it with a
settlement proposal whereby Markatech would surrender its 200 shares of
MCDI and provide MCDI with a release from all claims. Markatech provided
MCDI with such a settlement proposal which MCDI rejected. MCDI subsequently
offered to purchase Markatech's MCDI shares for the nominal sum of $5,000.
Prior to the expiry of MCDI's offer, MCDI called a directors' meeting at
which it purported to redeem the 200 MCDI shares owned by Markatech for a
total of $2. Markatech has advised MCDI that there was no basis in law for
the redemption of the 200 MCDI shares, and that Markatech will hold MCDI
and its directors responsible for all damages Markatech suffers as a result
of MCDI's improper actions.
Markatech and its legal counsel are currently reviewing its rights and
possible courses of action relating to MCDI's termination of the
acquisition agreement dated March 5, 1998, and the redemption of the 200
MCDI shares. Markatech believes that its efforts have allowed MCDI to
establish and finance its business operations.
Markatech's board of directors is reviewing several technology ventures
which are compatible with Markatech's current business assets. In order to
enhance its ability to attract acquisition opportunities and investors,
Markatech is considering plans to have its shares listed or quoted in
additional jurisdictions. The company will continue to advise shareholders
of its progress in achieving the above goals.
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