LOCK<----however we now have problems starting to brew internally at the PUMPORAMMA factory:....President gardner get canned and Brooks, whom Ive met..and seems to be a control freak.... blows him out and .......we get the following news story..( HE DOES ALOT OF BACKPEDDLING IN THIS ONE )
PRN SAF T LOK TERMINATES EMPLOYMENT AGREEMENT WITH ITS PRESIDENT,
Jun 11 1998 13:25
Cancels Laser Agreement and Cautions Investors Concerning
Unauthorized Press Release and Recent Analysts' Reports
TEQUESTA, Fla., June 11 /PRNewswire/ -- Saf T Lok (Nasdaq: LOCK) announced
today that it has terminated the employment of its president and CEO, John
Gardner, effective immediately. Mr. Gardner had served as president and CEO
since April of 1997. The Company's chairman and founder, Franklin Brooks, will
act as interim president and CEO while the Company conducts a search for a new
CEO.
Termination of Agreement with Semiconductor Laser International
The Company also announced that it has notified Semiconductor Laser
International Corporation that it has terminated the May 22, 1998 agreement
between the two companies with respect to development of a laser-driven
fingerprint locking mechanism for use with the Company's products. Instead,
the Company intends to focus its efforts on the continued development of its
grip and magazine combination locks, which do not require batteries or other
external power sources.
June 8, 1998 Press Release by United Safety Action On June 8, United Safety Action ("USA"), an unaffiliated company with
which Saf T Lok entered a distribution agreement in February of 1998, released
news claiming that Saf T Lok "through United Safety Action..." had entered
into a marketing agreement with Enzone USA, purportedly the world's largest
distributor of home safety equipment. The Company wishes to eliminate
uncertainty that may have resulted from this release. Saf T Lok is not a
party -- through USA or otherwise -- to any agreement with Enzone USA.
Further, Saf T Lok did not review or approve USA's release or any agreement
entered by and between USA and Enzone. Indeed, the release by USA without the
prior approval of Saf T Lok was prohibited by and thus a breach of the express
terms of the distribution agreement between Saf T Lok and USA.
Saf T Lok cautions investors that claims made in USA's release concerning
USA, Enzone, Saf T Lok, and the effect any USA/Enzone marketing agreement will
or might have on distribution of Saf T Lok's products are not the claims of
Saf T Lok.
Recent Analysts' Reports
The Company's concern that the USA release could mislead as to the source
of the information and claims made therein was borne out by the June 9, 1998
research report published by Chatfield Dean & Co. That report incorrectly
attributed to the Company the claim in the USA release that Enzone currently
distributes to over 40,000 retail outlets, including Wal-Mart K-Mart, and Home
Depot. The Company's correction of this error should not be construed as
adoption of the remainder of the Chatfield Dean & Co. report, as to which the
Company, as a matter of policy, expresses no opinion.
While the Company appreciates and welcomes the fact that securities
analysts have initiated coverage of the Company, with respect to the May 27
report of Woodward Trading Company, the Company endorses the statement in the
June 10 issue of the Wall Street Journal - Southeastern Journal ("Stray Advice
Boosts Saf T Lok, But Competition Clouds Outlook") to the effect that
investors should carefully consider the source of such reports. Indeed, the
Journal noted that Mr. Woodward's report has caused the news service that
distributed it to consider a review of its distribution policies.
Yesterday's Journal article likewise reported that Mr. Brooks, the
Company's chairman, commenting on the Woodward report's overly optimistic
12-month target price of $30, stated that, "I would say a $15 stock." Today,
Mr. Brooks retracted that comment, stating that neither he nor the Company
wishes to make projections concerning the Company's stock price. According to
Mr. Brooks, "The thought I was trying to convey was that had the Woodward
report set a target of $15, that target would not have been as overly
optimistic as $30. It was not my intention to predict that the price of Saf T
Lok stock would or should be at any particular level at any particular time."
Mr. Brooks further explained that, "Investors should make their own
determination about the Company's prospects and stock price based upon the
Company's periodic filings with the Securities and Exchange Commission and its press releases. Moreover, investors should consider all forward-looking
statements, whether presented orally or in writing, in light of the cautionary
language concerning competition, consumer acceptance of the Company's
products, the terms and conditions of the Company's distribution agreement,
and other factors that could materially affect the Company's results as
described in the Company's public filings and press releases."
Finally, the Company noted, neither the termination of Mr. Gardner's
employment and the laser agreement nor the unauthorized USA news release and
the uncertainty it may have caused can alter the fact that the Saf T Lok(TM)
gun locks are the only gun locks on the market that can become an integral
part of a firearm, can safely lock a loaded firearm, yet can be unlocked in
seconds -- only by an authorized user. The lock requires no keys, batteries,
computer chips or rings to operate.
This press release contains forward-looking statements concerning the
Company's plans to engage a new president and chief executive officer and the
Company's intentions concerning the focus of the Company's effort on
development of its mechanical grip and magazine combination type locks and
other matters. Such statements are based on the Company's current
expectations. Actual results could differ materially based upon a number of
factors, including but not limited to, availability of executive talent on
terms acceptable to the Company, competition and consumer acceptance of the
Company's products, and other factors described in the Company's periodic
reports filed with the Securities and Exchange Commission. |
