Advanced Laser Sues to Cancel Shares.LOS ANGELES--(BUSINESS WIRE)--July 20, 1998--Advanced Laser Products Inc. (NASDAQ/BB:ADLP ADLP Alaska Distance Learning Partnership ADLP Airborne Data Link Processor ADLP Army Distance Learning Program ADLP Aircraft Data Link Processor ADLP Army Distance Learning Plan (US Army) ADLP Advanced Data Link Program ) The former secretary of Advanced Laser Products Inc., recently caused the registrar and transfer agent of the company, Signature Stock Transfer Inc., of Dallas, to wrongfully issue 300,000 shares of its common stock. The company did not authorize the issuance of such common stock and was not paid any consideration for such common stock. The former officer opened a new brokerage account Brokerage Account An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf. via telephone at Union Securities, Ltd., in Vancouver, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , Canada. Thereafter, Union sold and/or transferred the common stock, having endorsed the certificates for transfer, with a medallion guarantee, without personally or directly witnessing the required signatures and then, delivered the certificates to Signature, for transfer into its trade name of REXCO. Upon discovery of the unauthorized issuance of such common stock, the company placed a stop transfer instruction with Signature, regarding the common stock to prevent their transfer and caused the former secretary to resign. Union threatened to bring a civil action, to force the company to release its stop transfer instructions to Signature and to force the company to transfer such common stock as requested, by Union. Union filed its civil action in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Central District of California and filed an application for a temporary restraining order temporary restraining order: see injunction. , to enjoin To direct, require, command, or admonish. Enjoin connotes a degree of urgency, as when a court enjoins one party in a lawsuit by ordering the person to do, or refrain from doing, something to prevent permanent loss to the other party or parties. the company and Signature from enforcing the existing stop transfer order covering the 300,000 shares of common stock held by REXCO. The chief judge of this district court denied Union's application for the temporary restraining order. The company filed a civil action in the United States District Court for the Northern District of Texas The United States District Court for the Northern District of Texas (N.D. Tex.) is a United States district court. Its first judge, Andrew Phelps McCormick, was appointed to the court on April 10, 1879. The court convenes in Dallas, Texas. (Civil Action No. 3-98-CV-1624-D), seeking a declaratory judgment declaratory judgment In law, a judgment merely declaring a right or establishing the legal status or interpretation of a law or instrument. It is binding but is distinguished from other judgments or court opinions in that it includes no executive element (an order that regarding the legitimacy of the issuance of the disputed 300,000 shares of common stock, injunctive relief injunctive relief n. a court-ordered act or prohibition against an act or condition which has been requested, and sometimes granted, in a petition to the court for an injunction. , and damages against Union, Signature, and the former secretary of the company. Union again filed an application for a temporary restraining order on Friday, July 17, 1998, which was granted by the court, following a telephone conference. As a result, the company and Signature are required by the court order, to release its stop transfer order and to permit the release and transfer of such common stock, as directed by Union. The company intends to continue to pursue its legal remedies to resolve the disputes regarding these 300,000 shares of common stock. For more information please contact Charles McGuirk at 310/284-4849. Certain statements in this news release may constitute "forward- looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties, and other factors, which may cause the actual results, performance, or achievement expressed or implied, by such forward looking statements to differ.
CONTACT: Charles McGuirk, 310/284-4849
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