TORONTO, Ont., March 19, 2003 (PRIMEZONE) Edgetech Services Inc. (OTCBB:EDGH) provides the following update to its shareholders.
The company has recently made public information related to a series of new revenue-generating contracts and business activities. All business activities are proceeding normally and, in general, business conditions are positive. Revenue continues to grow and the company's expectations are that revenue will continue growing in the future.
Despite significant fundamental progress in the Company's operations, EDGH common shares have been subjected to unusual volatility and selling pressure.
The Company has requested the launch of a formal investigation from the appropriate parties as to whether illegal naked shorting is in fact taking place, and if it is, to quantify it and gather evidence that could be provided to regulators and law enforcement. The Company intends to vigorously defend the rights of its shareholders and will gather evidence that could be beneficial to the appropriate authorities should they decide to conduct their own investigation.
Irregular trading activity in the Company's common shares has been observed recently and appears to have unduly affected the company's share price. The Company and its board of directors are considering several different possible actions that could be taken, including moving to a custody-only common share transfer system.
The Company has been alerted to the possibility that the illegal practice of "naked short-selling" of EDGH stock may have been occurring.
Naked short-selling is a violation of the affirmative determination rule of the NASD. It requires a securities firm to determine, prior to selling a stock short, that it can borrow securities or provide for delivery by the settlement date, before transacting a short sale of the securities. The rule prevents short-selling by those who do not have the capability of delivering the stock that they are selling. Naked short-selling takes place where shares sold are never borrowed, never delivered by the seller, but nevertheless the seller collects money for the stock not delivered within the three days prescribed by NASD guidelines.
Naked short-selling is harmful to the Company's legitimate shareholders and thus it is the responsibility of the Company to protect its shareholder's interests.
The Company also announces that it has recently changed its auditors in order to always remain in complete compliance with the ever-changing regulatory environment. Until recently the Company used the services of a highly respected auditing firm based in Canada. Under recent changes to certain regulations, a US-based auditor is now required and the Company has taken this step to remain in full compliance. This step delayed our filing of our quarterly report which will be filed on or before Friday, March 21.
To summarize, Edgetech Services Inc. is happy to announce that general business conditions remain strongly positive and that its business is expanding. Management is fully committed to building and protecting shareholder value and will fight vigorously against any parties found to be illegally manipulating its common shares.
The Company deeply thanks its shareholders for their support and assistance.
About EdgeTech Services
Edgetech's primary business is IT Consulting covering the following areas: IT Security, Biometrics, Business Solutions, Systems Engineering, Software Development and Project management. Edgetech is a Business Partner to Microsoft, IBM, Symantec, Counterpane and many others. Edgetech's clients include major government and private sector clients in Canada and the United States. Some of these clients include: IBM, Falconbridge, Bell Nexxia, Rogers Telecom and Province of Ontario. The Edgetech website is www.edgetechservices.com # # #
Press Contacts: For more information contact: Mr. Tae Ho Kim, CEO, EdgeTech Services Inc., (204)-943-0803, tkim@edgetechservices.com
This press release includes forward-looking statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Inherent risks and uncertainties could cause actual results to differ materially from the forward-looking statements. Such risks and uncertainties are described in the periodic reports the Company files with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release.