Printer Friendly

Zmax Corp. Also Named in Finder's Fee Litigation.

WASHINGTON--(BUSINESS WIRE)--July 7, 1997--Zmax Corp. (OTC: ZMAX) announced Monday that civil litigation regarding a finder's fee dispute was recently commenced by Atlas Capital Group Ltd. in the Supreme 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) 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 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
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jul 7, 1997
Previous Article:ADTRAN, Inc. Reports Second Quarter 1997 Results.
Next Article:CorNet Partners with FirstFloor Software for Sales Force Automation and Internet/Intranet Integration Strategy.

Related Articles
Zmax Corp. announces European exchange listings.
Zmax Files NASDAQ SmallCap Listing Application.
USIS Network Associate Program is offering incentives for referrals.
Speedway Motorsports Announces Resolution of FTC vs. Oil-Chem Litigation.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters