Arete Industries, Inc. Releases Supplemental Response to Recent SEC Complaint.BOULDER, Colo.--(BUSINESS WIRE)--Aug. 13, 1999-- Arete a·rête n. A sharp, narrow mountain ridge or spur. [French, from Old French areste, fishbone, spine, from Late Latin arista, awn, fishbone, from Latin, awn. Industries, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: AREE) today supplemented its Aug. 4, 1999, release responding to the recent SEC complaint against it, two former officers/directors and its current chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . The Company has only recently received the SEC complaint and is still reviewing it. Counsel will be reviewing the evidence available from the SEC investigation and likely will be filing a response within the next sixty (60) days. Counsel also intends to confer with Verb 1. confer with - get or ask advice from; "Consult your local broker"; "They had to consult before arriving at a decision" consult ask, enquire, inquire - inquire about; "I asked about their special today"; "He had to ask directions several times" the SEC staff informally to determine whether a prompt resolution of the matter is possible. The SEC's complaint concerns certain press releases made by former management of the Company in February of 1998 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a proposed merger with an entity owned by Mr. Raabe, the Company's current CEO. The SEC complaint also addresses late and non-filing of certain of past annual and periodic financial reports by former management. The Company, Mr. Raabe and the prior management cooperated with the SEC in its investigation. There is no suggestion in the complaint that either the Company, Mr. Raabe or the former officers/directors benefited from the press releases. The press release at issue was based on information that was reasonably believed to be reliable and accurate. The Company also issued a clarifying release. The Company believes that other than the distraction to management and the defense costs, the case will not have a material impact on the day-to-day business nor the present or future prospects of the Company or its subsidiaries. Further, based on advice of counsel, the Company does not plan to issue further releases nor will endeavor to make more specific information available to the public in the immediate future concerning the case. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained herein which are not historical are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. |
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