MIAMI, Aug. 21, 2002 (PRIMEZONE) -- Today E-Rex, Inc. (OTCBB:EREX) announced that the civil lawsuit filed by E-Rex, Inc. and its directors in U.S. District Court in California against Chris Ford, Terry Shores, June Blackwell, The Carol J. Gamble Trust, Steve Rigg, Randy Lamberto, Ressonyia Andersen, David Simmermacher, Suavek Kownacki, Michael J. Capelouto and the Sage Group Strategies has been withdrawn by the Company.
"The Company chose to withdraw the lawsuit after several of the defendants agreed to cooperate with management for the benefit of all E-Rex shareholders," stated Carl Dilley, E-Rex President and CEO. "We are hopeful that the remaining members of this group will cease their attacks against the Company so as not to prompt any future legal action. We need to focus all of our energies and resources on our product and not on expensive litigation."
"The E-Rex team has been making clear strides forward in our effort to restore shareholder confidence, and this step is being taken to further those efforts," stated Joe Pacheco, E-Rex's Chief Operating Officer. "The Company has also recently complied with Section 906 of the Sarbanes-Oxley Act of 2002 by having our Chief Executive Officer execute certification of our latest 10-QSB for the second quarter of 2002."
On July 29, 2002, E-Rex announced that a civil lawsuit filed by this same minority shareholder group against E-Rex President and CEO Carl Dilley, Chairman Donald Mitchell, Director Joseph Pacheco, former Director/Treasurer Jeffrey Harvey, attorney Brian Lebrecht and The Lebrecht Group law firm, as well as DiveDepot.com, Inc., and International Investment Banking, Inc. was dismissed with prejudice by Federal Judge James C. Mahan in United States District Court, District of Nevada. The Court entered a final judgment in favor of the defendants and against the plaintiffs.
"I have always had a strong belief in the marketing potential for E-Rex's flagship product, Dragonfly. Now that the litigation in Nevada and California is behind us, we hope that the Company and its shareholders can work together to make inventor Dr. Adi Bauer's dream finally come to life," stated E-Rex Shareholder, Terry Shores.
Company Files PRE 14-C Seeking Approval for Increase of Authorized Common Stock
E-Rex has filed preliminary information statement 14-C with the Securities and Exchange Commission in order to seek written consent of the holders of a majority of the Company's Common Stock of a proposal to approve an amendment to the Articles of Incorporation of the Company to increase the authorized common stock from 100,000,000 shares, par value $0.001, to 250,000,000 shares, par value $0.001. This definitive information statement 14-C will be sent to stockholders on or about August 30, 2002.
The Board of Directors believes that it is advisable and in the Company's best interests to have available additional authorized but un-issued shares of common stock in an amount adequate to provide for the Company's future needs. The additional shares will be available for issuance from time to time by the Company in the discretion of the Board of Directors, normally without further stockholder action (except as may be required for a particular transaction by applicable law, requirements of regulatory agencies or by stock exchange rules), for any proper corporate purpose including, among other things, future acquisitions of property or securities of other corporations, stock dividends, stock splits, stock options, convertible debt and equity financing. The availability of additional authorized shares will be achieved by effectuating an increase in the number of authorized shares of common stock from 100 million to 250 million shares. This step is necessary, in the judgment of the Board of Directors, in order to raise additional capital and carry out the Company's business objectives.
Additional details on this filing and all E-Rex filings can be found via the investor section of the Company's website or by visiting http://www.sec.gov.
About E-Rex, Inc.
Headquartered in Miami, E-Rex, Inc. is a technology company dedicated to designing and the future production of stand alone user-friendly portable devices and direct Internet access products targeted at mobile enterprise users.
Further details on the Company can be found online at http://www.e-rex.net.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities and Exchange Act of 1934 and is subject to the safe harbor created by these sections. E-Rex, Inc. assumes no obligation to update the information contained in this press release. Certain information included herein may contain statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as operating costs, capital spending, financial sources, and the effects of competition. Such forward-looking information is subject to changes and variations which are not reasonably predictable and which could significantly affect future results. Accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company.