Epic promoter faces $200,000 suit
Epic Oil and Gas Ltd EAS
Shares issued 15,743,706 Apr 27 close $0.22
Tue 27 Apr 99 Street Wire
by Brent Mudry
Vancouver stock promoter David Yue faces a $200,000 suit from a Hawaiian
company, stemming from an Epic Oil and Gas financing in October. In a
statement of claim filed Monday in the Supreme Court of British Columbia,
Caribbean Development (Hawaii) claims Mr. Yue failed to provide free
trading shares and then bounced a $200,000 settlement guarantee cheque.
Lawyer Mary Macaulay of Ladner Downs claims that on Oct. 8 and 9, 1998,
Caribbean agreed to buy Mr. Yue's subscription rights to 400,000
unrestricted shares of Epic at a price of 32 cents each. The suit claims
that Caribbean agreed to pay for the shares in full by Oct. 13, and Mr. Yue
agreed to deliver the share certificate by Oct. 23. Caribbean claims Mr.
Yue missed the deadline, then delivered 400,000 restricted shares a month
later, on Nov. 26.
The Hawaiian company claims it advised Mr. Yue that it not accept the
restricted shares, which had a hold period expiring March 2. The suit
claims that in a Nov. 26 settlement, Mr. Yue agreed to arrange for a third
party to buy Caribbean's restricted shares at 50 cents each, with $100,000
due on Dec. 14 and $100,000 due on Jan. 14. Ms. Macaulay also claims that
Mr. Yue issued a personal guarantee of performance on Nov. 27, with a
cheque. The suit claims Mr. Yue, in breach of contract, did not arrange the
purchase by the third party, which is not identified. Caribbean claims that
on Feb. 10, after several demands for Mr. Yue to perform the contract, it
attempted to cash his cheque. The cheque was returned by the Hongkong Bank
of Canada as the account was closed. No statement of defence has yet been
filed.
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