Xinex Networks Inc -
$150,000 financing secured; position clarified in article
Wednesday Feb 25 1998
Mr Roy Leahy reports
Further to the press release in Stockwatch on February 19 1998, the
company has secured commitments with respect to the proposed
private placement for an approximate amount of $150,000. The
company estimates that this amount, along with cash on hand, will
be sufficient to finance the current level of operations through the
commercial launch of the Vortex system at the Computer Telephony
Expo in Los Angeles. In excess of 300,000 people are expected to
attend this year's conference, the computer telephony industry's
leading tradeshow which provides the company with the opportunity
to showcase its products for industry analysts, reporters and buyers.
In addition, Xinex is continuing discussions with respect to the
proposed private placement whereby the company announced its
intention to place up to 10,000,000 special warrants at $0.14 each,
for gross proceeds of up to $1,400,000. Each special warrant will
entitle the holder thereof to acquire, at no additional cost one
common share of Xinex and one warrant. Each warrant shall entitle
the holder to purchase one additional common share of Xinex at an
exercise price $0.18 for a period of two years after the closing date.
In the event Xinex sells these special warrants to offshore
purchasers who only accept a 90 day hold period, these special
warrants will be sold at $0.18 per special warrant.
Xinex expects the proposed private placement to close within the
next few weeks. While the company continues to hold discussions
with interested investment bankers and potential investors, there is
no assurance that the private placement will close.
The Vortex multimedia communications system is an innovative
replacement product for a sophisticated telephone system and
computer network. Using technology that allows voice, video and
data communication to be transmitted over the same wire, Vortex
provides an integrated telephone and computer system that has
built-in telephone, voice mail, and video conferencing capability.
Vortex also functions seamlessly with a Windows NT server to
provide high-speed data networking. With Vortex, users can make
and receive calls from Windows call manager applications and
control telephone operations like hold, conference and transfer from
their PC.
Mr Roy Leahy also reports
The company wishes to clarify its position on the February 25 1998
article issued by Canada Stockwatch. The article states that Mr
Doug Kind, former president and CEO of Xinex, has initiated a
lawsuit in the BC Supreme Court against the company, as well as
Mr Roy Leahy, a director of the company and the current president
and CEO, Mr Harry Jaako, a director of the company, and the
company's corporate secretary, Mr Roger Flowerdew. The article
alleges that the defendants took or failed to take actions leading up
to, and subsequent to, the company going public, which allegedly
restricted Mr Kind from being able to sell Xinex shares that he held
at that time, and that as a result, he has suffered damages.
With regards to the above mentioned claims, the company notes that
conditions were imposed on Xinex, and its shareholders, by the
ASE, prior to granting its approval to the transaction. Mr Kind, who
was acting, at that time, in his executive capacities as CEO and
chairman of the board of Xinex, was fully involved and
knowledgeable of all aspects of the process of taking the company
public and in the company's board of directors ultimate unanimous
approval of the terms and conditions of the transaction. As a
condition for approval of the transaction, the ASE required that Mr
Kind and two individuals place their shares in a performance escrow
arrangement.
Xinex believes that Mr Kind's lawsuit is a retaliatory action in
response to the July 1997 lawsuit that the company began against
Mr Kind, his company, and certain other parties, alleging breach of
fiduciary duty, breach of contract, amongst other things, which
Xinex is vigorously pursuing. The company is confident that the
issues raised in the Kind lawsuit will ultimately be decided by the
courts in Xinex's favour.
(c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
|
