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STAT-TECH INTERNATIONAL ANNOUNCES PRELIMINARY RESULTS; COMMENTS ON LEGAL PROCEEDINGS, TESTING OF AVIATION WICK, AND STATUS OF AUDIT REPORTS

STAT-TECH INTERNATIONAL ANNOUNCES PRELIMINARY RESULTS; COMMENTS ON LEGAL
 PROCEEDINGS, TESTING OF AVIATION WICK, AND STATUS OF AUDIT REPORTS
 PUEBLO, Colo., July 20 /PRNewswire/ -- Stat-Tech International Corp. today announced preliminary results of operations for the period Oct. 1, 1991, through June 30, 1992. Revenues were approximately $55,000 for the period. The company had an operating loss of approximately $1,085,000 for the first nine months of the 1992 fiscal year. The company's cash available as of June 30, 1992 was approximately $200,000.
 A.M. Marson, the company's acting chief executive officer, said that the company continues to actively pursue prosecution of claims against Raynard M. Fenster, his wife, Therese M. Lamb, and Hayden H. Thompson. These persons are former officers and board members of the company who, in a lawsuit filed by the company in federal district court, Denver, have been charged with defrauding the company. Marson stated that the company also is pursuing claims against Raynard Fenster in its Chapter 11 proceeding, pending the U.S. Bankruptcy Court for the District of Colorado. In the Bankruptcy Court action, the company is requesting that the Bankruptcy Court subordinate Fenster's shares and his claims to the interests and claims of all other creditors and shareholders. The company also is requesting that the Bankruptcy Court order Fenster to repay the company $178,000, which Fenster withdrew from the company in late 1991, and $422,000 representing an amount due for stock issued to Fenster upon exercise of warrants for which no payment was ever received by the company.
 Marson also said that further testing of the Static Buster Aviation Wick has revealed that the wicks in inventory, which were produced in 1991, have not been able to meet the specifications necessary to achieve market acceptance. The failure of the wick will result in a significant inventory write-down. As a result, previously anticipated sales of the wick, planned to begin as early as September 1992, will not occur. The company currently is evaluating the feasibility of proceeding with further product development efforts to the wick.
 Anticipated sales of the wick were a principal factor in the decision by Proactive Partners, L.P. of San Francisco, Calif., to offer to loan $600,000 to the company. Certain performance criteria, including projected wick sales, were to be achieved by the company as a condition of the anticipated loan. The recently discovered wick defects render the company unable to meet these performance criteria, and have caused Proactive to withdraw its offer to loan funds to the company on terms previously announced. However, discussions between the company and Proactive over terms for possible financing are continuing. If Proactive determines to make a new offer on some basis to provide financing to the company, the terms and conditions of any agreement to provide such financing would be subject to U.S. Bankruptcy Court approval.
 The company also announced that the audit reports for the fiscal years ended Sept. 30, 1989 through Sept. 30, 1991 are being held by the auditor pending Bankruptcy Court approval of the payment of the balance due on the auditor's professional fees.
 Stat-Tech International Corp. is engaged in the application of advanced electroconductive materials for the control and elimination of electrostatic charges.
 -0- 7/20/92
 /CONTACT: A.M. Marson of Stat-Tech International, 719-543-5005/ CO: Stat-Tech International Corp. ST: Colorado IN: SU:


KD -- NY018 -- 0607 07/20/92 09:43 EDT
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Publication:PR Newswire
Date:Jul 20, 1992
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