To: Mr Metals who wrote (107 ) 11/24/1998 6:58:00 PM From: Rick Westfall Read Replies (1) | Respond to of 139
Subject: Stockwatch: TKO Resources Inc - Street Wire Ousted consulting firm files $175,000 suit TKO Resources Inc TK Shares issued 21,543,200 Nov 23 close $0.07 Mon 23 Nov 98 Street Wire by Brent Mudry TKO Resources faces a $175,000 suit from Fleming Financial, the consulting firm of ousted stock promoter Donald Rutledge. In an endorsed writ of summons filed Friday in the Supreme Court of British Columbia, Fleming claims it was retained in October or November of 1996 and provided consulting services, with out-of-pocket expenses, from November 1996 to November 1997. Lawyer Walter Kosteckyj of Vancouver law firm Thompson & Elliott claims that as of November 1997, TKO owed Fleming $174,933, but it has refused or neglected to pay the amount. A full statement of claim has not yet been filed. Mr. Rutledge and Fleming had the misfortune of being singled out for some unwelcome publicity by the Vancouver Stock Exchange last year. The VSE imposed a four-month cease-trade order on TKO on July 22, 1997 over concerns regarding a private placement. TKO admitted after it closed a $1.26-million financing of 1.5 million units at 84 cents that it actually only received $554,000. The VSE subsequently alleged that 841,000 units were issued prior to payment and an "apparently false private placement filing was made. (The sole stated buyer of the entire financing was Leslie Rutledge's Woodstock Products.) The exchange noted it referred the alleged offence to the British Columbia Securities Commission. TKO resumed trading on Nov. 21, 1997, after the VSE forced the termination of the company's management agreement with Fleming Financial and any other service agreements with Donald Rutledge. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com