Zmax Corp. Also Named in Finder's Fee Litigation.
WASHINGTON--(BUSINESS WIRE)--July 7, 1997--Zmax Corp. (OTC OTC
See over-the-counter market (OTC). : ZMAX ZMAX Azithromycin Extended-Release (Pfizer Inc,) ) announced Monday that civil litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. regarding a finder's fee Finder's fee
A fee a person or company charges for service as an intermediary in a transaction.
The charge levied by a person or firm for putting together a deal. dispute was recently commenced by Atlas Capital Group Ltd. in the Supreme Court of British Columbia The Supreme Court of British Columbia (SCBC) is the superior trial court for the Canadian province of British Columbia. The SCBC hears civil and criminal law cases as well as appeals from the Provincial Court of British Columbia. , Canada against Shafiq Nazerali, a Zmax shareholder and consultant.
The statement of claim also names Zmax and certain of its investors who are alleged to have some potential interest or obligation regarding the dispute.
Atlas has alleged that it entered into a partnership agreement with Nazerali that entitled Atlas to an equity interest or compensation from Nazerali in connection with Zmax's acquisition of Century Services Inc. (CSI CSI Crime Scene Investigator
CSI CompuServe, Inc.
CSI Commodity Systems, Inc.
CSI Commodity Systems Inc. (Boca Raton, FL)
CSI Crime Scene Investigation (CBS TV show)
CSI Christian Schools International ) in November 1996.
In addition to damages and other remedies from Nazerali and perhaps other defendants, Atlas is seeking a judicial declaration that Zmax is the constructive trustee of CSI and the CSI technology for the benefit of Atlas.
Pending further order, the court, without notice or an opportunity to be heard from Zmax and the other defendants, has prohibited the transfer, disposition, encumbrance A burden, obstruction, or impediment on property that lessens its value or makes it less marketable. An encumbrance (also spelled incumbrance) is any right or interest that exists in someone other than the owner of an estate and that restricts or impairs the transfer of the estate or or other dealing with any of the 2.8 million shares of Zmax issued in September 1996, or any of the proceeds thereof.
Zmax and its counsel are presently assessing the allegations and the company has not been served with the Statement of Claim. Zmax has moved to lift any prohibition as to itself. Unless lifted, this order may restrict the ability of Zmax to proceed with its previously announced recapitalization and may reduce the liquidity of Zmax common stock by restricting the transfer of certain securities.
"Neither Zmax nor CSI are aware of any mention, suggestion or allegations that Atlas had any interest in the CSI business opportunity," stated Michael C. Higgins, president and chief executive officer of Zmax. "As one of the founders and former principal shareholders of CSI, I can confirm that Atlas had no discussions with CSI regarding an acquisition, and this appears to be a dispute among parties other than Zmax." -0- Zmax Corp. trades with an OTC symbol of "ZMAX" and an OTC symbol of "ZMX" on the Frankfurt and Berlin Stock Exchanges
CONTACT: For investor information:
Investor Communications Co., 800/416-0811 or 800/547-0443
For media information:
Michael Baybak & Co. Inc.
Rhoda Moore, 818/542-6880