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Microcap & Penny Stocks : Zia Sun(zsun) -- Ignore unavailable to you. Want to Upgrade?

To: Sir Auric Goldfinger who wrote (5064)	10/15/1999 1:16:00 AM
From: Frank_Ching	Read Replies (2) \| Respond to of 10354

It seems as if the word 'defendant' hit a raw nerve with you. Are you not used to that name by now? As for 'punk', yes, I was quite fond of the Sex Pistols back in the late 70's but never wore safety pins. Frank Ching.

To: Sir Auric Goldfinger who wrote (5064)	10/16/1999 11:09:00 AM
From: StockDung	Respond to of 10354

If you have any questions regarding this press release, please feel free to contact the investor relations company, Veritas at 1-800-773-7317. SOURCE Dynatec International, Inc. northernlight.com Dynatec Reports On Canaccord Litigation And Other Legal Matters -------------------------------------------------------------------------------- SALT LAKE CITY, Aug. 7 /PRNewswire/ -- Dynatec International, Inc. (Nasdaq: DYNX) announces that Canaccord Capital Corporation, a Canadian broker/dealer, filed an action against the Company in the U.S. District Court in Salt Lake City, Utah on June 16, 1998. The action seeks an order compelling the issuance of 125,000 shares of common stock of the Company and monetary damages. The Company has filed a counterclaim against Canaccord and third party claims against other entities for damages and for declaratory judgement as to competing claims to the disputed 125,000 shares of Dynatec stock. Canaccord and the Company agree that the Company, or its transfer agent, had erroneously over-issued shares of stock to Canaccord in early 1997. In September 1997, Canaccord tendered shares to the transfer agent of the Company and directed the transfer agent to cancel the shares represented by the tendered certificates in acknowledgment of the over issuance. Management of the Company believed that additional shares had been over issued. The disputed certificate, No. 21625, was subsequently returned to the transfer agent and then canceled at the direction of the Board of Directors of the Company. This action was taken by the Company based upon the understanding of management that the entity believed by the Company to be holding the beneficial interest in the certificate had not paid for the shares, and was not a holder in due course or a "protected person" under applicable Uniform Commercial Code provisions. On August 3, 1998 the Court entered an order granting a preliminary injunction in favor of Canaccord and compelling the issuance of a stock certificate to Canaccord's designee for the disputed 125,000 shares of stock. If one of the other entities now named in the litigation should subsequently establish a right to the issuance of 125,000 shares of the stock of the Company, Dynatec may be required to issue additional shares. This action would result in a dilution to the shareholders of the Company. Dynatec intends to continue to pursue its claim for damages and declaratory relief in this litigation. As disclosed in the Form SB-2 registration statement of the Company filed with the SEC on June 26, 1998, the Company has received a telephonic contact from the SEC indicating that the SEC anticipates filing an administrative proceeding in the later part of calendar year 1998 against various individuals and entities which had engaged in business transactions with a British Columbia corporation and/or a non-U.S. business trust. The SEC representative indicated that the Company and its chief executive officer may be named in such agency action. The Company has submitted a Wells Submission to the SEC to clarify its position as to why it and its CEO should not be named in the administrative proceeding. The Company did enter into two 1994 subscription agreements with the British Columbia corporation and two simultaneous subscription agreements with the business trust in early 1995. However, none of the transactions were fully consummated and the Company received no consideration with regard to the transactions. The Company believes that its actions involving the four referenced subscription agreements are significantly different from the transactions engaged in with such entities by other public companies. In this regard, the Company insisted on the use of a different restrictive legend on its stock certificates which were to be held in escrow pursuant to the proposed transactions. Further, the Company made a press release on the day following all transactions. Such actions were intended to immediately put all third parties, and the investigating public, on notice of the unpaid nature of the subscriptions. The SEC representative has stated that the sole remedy which might be pursued against the Company would be a cease and desist order precluding the Company from engaging in transactions of this nature. The Company has not pursued any such transaction since early 1995 and has no intention of doing so. The SEC representative has also indicated that the staff is not recommending any monetary penalties against the Company. The SEC further acknowledges that, unlike other companies under investigation in the matter, the Company had received no funds in the transactions and that no disgorgement of proceeds would be sought. Based upon this information, the Company does not anticipate any material financial statement impact as a result of the referenced investigation. For a period of approximately one year, the NASD has requested from the Company through several letters certain documents related to the foregoing litigation, stock transactions and related matters. The Company is traded on the Nasdaq SmallCap market and has a contractual obligation to provide such requested information. The Company has cooperated in providing such documentation. The Board of Directors of the Company has unanimously approved an investigation of the foregoing transactions and matters, the Company's relationship and practices with the Company's transfer agent, certain related party transactions and other issues which were the subject of a recent preliminary inquiry conducted by certain members of the Board of Directors, the actions of officers of the Company with regard to such matters, and other related and unrelated corporate activities to assure that proper safeguards and policies are in place or are implemented which will assist the Board of Directors in monitoring the business activities of the Company. The Board is to be assisted in this review by independent outside counsel who will coordinate his efforts with current corporate counsel. If you have any questions regarding this press release, please feel free to contact the investor relations company, Veritas at 1-800-773-7317. SOURCE Dynatec International, Inc. Copyright © 1998, PR Newswire, all rights reserved.