NEW YORK, Dec. 2, 2009 (GLOBE NEWSWIRE) -- Zevotek, Inc. (Pink Sheets:ZVTK) (Frankfurt: T5V1.F), a worldwide direct marketer and distributor of innovative personal and home care items, today announced that on November 25, 2009 it entered into a settlement agreement with its former CEO pursuant to which it extinguished an outstanding liability of approximately $490,000 in unpaid compensation and severance in exchange for the issuance of 30,000,000 shares of its common stock. Based upon the November 25, 2009 closing price, the stock payment had a value of approximately $63,000. In addition, under the terms of the Settlement Agreement, Zevotek obtained a full release from its former CEO for any and all past or future claims against it or its subsidiaries.
"The settlement eliminated the single largest liability on Zevotek's books, one that represented about 33% of Zevotek's current liabilities as reported on the September 30, 2009 balance sheet," said Adam Engel, CEO of Zevotek. "Zevotek improved its balance sheet and eliminated a potential distraction from our focus on launching the Ionic Bulb." Commenting on the settlement terms, he added, "We settled by paying with shares instead of cash. We settled this claim for about 13 cents on the dollar. In addition, the settlement allows us to avoid any further costs, burdens, or distractions, and uncertainties of litigation relating to claims by our former CEO and allows us to focus our efforts on generating revenues for the Company."
About the Company:
Zevotek, Inc. plans to market and sell a range of innovative personal and home care items. Zevotek has a license to sell an energy saving compact fluorescent light bulb (CFL) named the Ionic Bulb. The Ionic Bulb is designed for consumer use by combining the performance features of ionic air cleaning technology with those of a 10,000 hour reduced energy use CFL. The Company plans to market the Ionic Bulb through TV infomercials, catalogs, magazines and major U.S. retail and specialty stores and the Internet. The Company's new 2 minute Ionic Bulb TV ad is designed to air on national cable channels, local broadcast channels and TV superstations. Zevotek's Ionic Bulb infomercial airs on the Company's www.newionicbulb.com website.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this release with respect to the Zevotek, Inc.'s business, financial condition and results of operations, as well as matters of timing and effectiveness of marketing the Ionic Bulb are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond Zevotek, Inc.'s control with respect to market acceptance of their products, whether financing will be available, the plans for Zevotek, Inc. to market and sell products as well as certain other risk factors which are and may be detailed from time to time in Zevotek, Inc.'s filings with the Securities and Exchange Commission. This press release contains forward-looking statements. The words or phrases 'may,' 'intends,' 'expects,' 'estimate,' 'indicate,' 'plans,' 'anticipates,' 'could,' 'if,' 'will,' 'should' or similar expressions are intended to identify 'forward-looking statements.' Actual results could differ materially from those projected in forward-looking statements as a result of a number of risks and uncertainties. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. Zevotek, Inc. cautions readers not to place undue reliance on such statements. Unless otherwise required by applicable law, Zevotek, Inc. does not undertake, and Zevotek, Inc. specifically disclaims any obligation to update any forward- looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.