ColorMax Technologies Settles Litigation.Business Editors TUSTIN, Calif.--(BUSINESS WIRE)--July 20, 2001 ColorMax Technologies Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CXTE), today announced that it has finalized a settlement with John B. Tenney and a dissident shareholder group. The settlement, approved by the Orange County Superior Court, provided for a release and dismissal of all of the Tenney claims and the claims brought in the name of ColorMax against the acting officers and directors, as well as the cross-complaint of Chief Executive Officer, Edward R. McLaughlin, Jr. In addition, the company was able to recover all of its funds, which had been held by the court. This enabled the company to satisfy the majority of its outstanding claims and accounts payable. The shareholder dispute in the Delaware Chancery Court The Chancery Court of York is an ecclesiastical court for the Province of York of the Church of England. The presiding officer, the Official Principal and Auditor, has been the same person as the Dean of the Arches since the nineteenth century . remains unresolved, and the Status Quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. Order issued by that court remains in effect. Although ColorMax was able to recover its funds that were interpleaded in the Orange County Superior Court by Hanmi Bank, the deprivation of its operating capital Noun 1. operating capital - capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements capital, working capital - assets available for use in the production of further assets for six months has irreparably harmed the company. "The company was previously unable to access the funds due to the objections of a dissident shareholder group, and now it's a matter of too little, too late," stated McLaughlin, president 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. of ColorMax Technologies. That shareholder group, including entities identified in a subpoena subpoena (səpē`nə) [Lat.,=under penalty], in law, an order to a witness to appear before a court. A subpoena ad testificandum [Lat. from the enforcement staff of the Securities and Exchange Commission (SEC) in an investigation of potential violations of federal securities laws, and known as Kimrose Holdings Ltd., Nano Material Science Inc., Harvest Capital Management Inc. and Gem Group Inc. were collectively defaulted for not making an appearance in the Delaware action that sought to invalidate a special shareholder meeting. McLaughlin had attempted to arrange loans to pay for auditors to prevent delisting and to save the assets and equipment of the company, but could not achieve financing on workable terms. "We have hit a wall, our hands are tied, and we are prevented from raising any additional capital," said McLaughlin. "Unfortunately there is nothing left for us to do but seek judicial guidance until the shareholder dispute is resolved." In a special meeting of the board of directors, all of the remaining board members announced their intentions to resign. Forward-Looking Statements Any of the above statements that refer to the company's estimated or anticipated future results or product performance, are forward-looking and reflect the firm's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors impacting ColorMax's business, including new product performance and regulatory processes. There is no guarantee the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. will ultimately approve any of the company's products current under review, including its color corrective soft contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl . In addition, economic factors, such as interest rates, the state of the economy worldwide, and government laws and regulations can affect overall operations. As a result, the reader is cautioned not to reply on these forward-looking statements. Additional information concerning these factors may be found in news releases, as well as the company's public periodic filings with the Securities and Exchange Commission, and in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . |
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