Glen, Read the press release and determine if it fits your criteria. Hope they don't get crushed with warrants.
__________________________________________________________________
Fix-Corp is Dismissed from Litigation with 3DM LLC
Fix-Corp Appeals Arbitrators Decision
BEACHWOOD, Ohio, Jan. 28 /PRNewswire/ -- Fix-Corp International, Inc.
(OTC BULLETIN BOARD: FIXC) today announced that it has been dismissed
from the lawsuit filed in Cuyahoga County by 3DM LLC. In addition, the
Company has appealed a New York court's decision confirming an
arbitrator's award in favor of Chatham Partners, Inc. Chatham's claim
against Fix-Corp grew out of a December 1996 agreement pursuant to which
Chatham was to act as Fix-Corp's exclusive financial advisor and
placement agent for a private placement of up to $5,000,000 of debt
securities. As the arbitrator noted in his decision, Chatham did not
raise the funds, Fix-Corp did. Fix-Corp provided evidence that it raised
the funds through actions independent of Chatham's efforts. However,
Chatham claimed that it was due compensation pursuant to language in the
agreement regardless of Fix-Corp's efforts.
After the arbitrator rendered his decision, Fix-Corp, through its newly
retained New York counsel, discovered that Chatham was not registered
with the Securities and Exchange Commission ("SEC") or the National
Association of Securities Dealers, Inc. ("NASD"). Fix-Corp further
discovered, and Chatham does not dispute, that from February, 1994 to
December 11, 1998, the State of New Jersey had revoked Chatham's
corporate charter.
Mark Fixler, Chairman and Chief Executive Officer comments, "This
decision was obviously unexpected. The court acknowledged that we had
raised relevant issues after the arbitrator had rendered his decision,
although the court believed that it could not consider these issues in
its review of the arbitration. The court's decision has been appealed
and certain aspects of the judgment have been stayed pending the outcome
of the appeal. We believe that existing case law in the State of New
York will be persuasive in our appeal. Although we view this as
unwarranted, unjust and without grounds, I will certainly do what is
legally proper and in the best interest of this Company and its
shareholders."
The order requires Fix-Corp to pay Chatham Partners, Inc. commission,
expenses and interest aggregating approximately $320,143 plus an
additional $4,148,000 in the form of warrants to purchase Fix-Corp's
common stock. The judgment, which calls for the warrants to be
registered by September 1999, is currently stayed pending appeal.
Fix-Corp International, Inc. is an international environmental-based
recycler of post-consumer high density polyethylene (HDPE) and producer
of recycled post-consumer plastic resin for use in the manufacture of
high- performance plastic pallets through wholly owned subsidiaries
Fixcor Industries, Inc. and Pallet Technology, Inc. The Company is also
under worldwide licensing agreement with Allied Signal to reclaim and
recycle both oil and plastic from post-consumer HDPE motor oil
containers through its wholly owned subsidiary Fixcor Recovery Systems,
Inc. The Company is based in the Cleveland suburb of Beachwood, Ohio and
can be found on the World Wide Web at www.fix-corp.com.
Certain statements contained in this release, including, without
limitation, statements containing the words "believes," "anticipates,"
"expects" and words of similar import, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed
or implied by such forward- looking statements. Such factors include,
among others, the possibility that Fix-Corp's appeal of the old
confirming the arbitrator's award may fail and other factors discussed
in Fix-Corp's reports filed with the Securities and Exchange Commission.
Given these uncertainties, readers of this release and investors are
cautioned not to place undue reliance on such forward-looking
statements. The Company disclaims any obligation to update any such
factors or to publicly announce the result of any revisions to any of
the forward- looking statements contained herein to reflect future
events or developments.
SOURCE Fix-Corp International, Inc.
CO: Fix-Corp International, Inc.; 3DM LLC
ST: Ohio
IN: CHM
SU: LAW
01/28/99 15:40 EST prnewswire.com
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