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Technology Stocks : Xinex Networks -- Ignore unavailable to you. Want to Upgrade?

To: mr. ed who wrote (377)	2/24/1998 4:59:00 PM
From: Mike Jafari	Respond to of 693

Former CEO sues Xinex Networks Inc Tuesday Feb 24 1998 by Brent Mudry Xinex Networks faces a $668,900 suit from its former chief executive Douglas Kind. In a statement of claim filed Monday in BC Supreme Court, Mr Kind seeks unspecified damages for "misrepresentation," and "conspiracy," as well as unspecified punitive damages, general damages for breach of contract and special damages of $668,850. The named defendants are Xinex, president and chief executive Roy Leahy, director Harry Jaako and v-p Roger Flowerdew. The suit traces back before Xinex's inception as a public company. Vancouver lawyer Alan Favell of Charron Favell claims that from October to December 1995, Xinex's board discussed taking the company public on the Alberta Stock Exchange. The suit claims the board, including Mssrs Leahy, Jaako and Flowerdew, wanted to take Xinex public and requested that Mr Kind put his shares in escrow. Mr Favell notes that Mr Kind held 6.92 million of the 7.11 million shares placed in escrow. The client claims his lawyer agreed to the escrow after Mssrs Leahy, Jaako and Flowerdew told him the company would make timely applications to the Alberta Stock Exchange for escrow release. The trio also allegedly promised to make timely application to achieve reporting issuer status in BC for Xinex, which would be required for Mr Kind to sell his performance shares. Based on these alleged terms, Mr Kind and his Xinex associates entered into a performance escrow agreement on December 15 1995. The suit claims that in breach of the agreement made by the Xinex trio, Xinex did not immediately apply for reporting issuer status in Decmember 1995 or January 1996. Mr Kind claims that a prospectus or other necessary documents were not filed with the BC Securities Commission until September 17 1996, and his shares could not be traded for a year after this date. The former CEO claims that as a result, he was not able to trade his shares from January to September 1997, except on a restricted basis, and he suffered damage. Mr Kind also complains that Xinex delayed in having audited financials prepared, which were necessary for the release of his shares. On October 14 1997, Mr Kind applied to the ASE for the release of 2.56 million of his escrow shares. A week later, the ASE approved his request, and Xinex lost a subsequent appeal. Mr Kind notes that Xinex's stock price declined from spring to fall of 1997, and he wants the company to make good on his paper losses.