SAN JOSE, Calif., Dec. 30, 2013 /PRNewswire/ -- Sollensys Corp.
(OTC Pink Sheets: SOLS) provided an update today regarding
operations of its Korean subsidiary.
Mr. Frank Woo, CEO of Sollensys,
stated: "We continue to work hard to re-start the operations of our
Korean production subsidiary, Sollensys Korea ("Subsidiary"). Our
key challenges at present are to raise funds to provide working
capital, resolve a legal challenge facing our Subsidiary and assess
recapitalization and/or restructuring alternatives."
Mr. Woo continued, "We're working with investors and our
creditors to assess various financial alternatives, and our Korean
legal team is addressing an ongoing lawsuit by the Korea Institute
for Advancement of Technology ('KIAT'). Irrespective of these
challenges, we remain committed to making our product line a
success, and are confident our touchscreen products will provide an
attractive input for cell product manufacturers such as
Samsung."
As previously reported in our 2011 audited financial statements
filed with the Securities and Exchange Commission's EDGAR system on
April 22, 2013, the lawsuit filed
against our Subsidiary by KIAT is based upon the Subsidiary being
selected by the Korean government as a technology development
company for "2011 Touch Convergence Cluster Project." The
Subsidiary received support from the Korean government in 2011, but
was unable to fulfill all its commitments under the KIAT agreement
due to a suspension of production caused by insufficient
capitalization.
KIAT's lawsuit is based on its claim against the Subsidiary for
recovery of the subsidies paid to the Subsidiary. During 2012 and
up to December 30, 2013, KIAT and the
Subsidiary have held meetings to reach a resolution, but no
agreement has yet been made. This lawsuit is in its early stage and
the result cannot be reasonably estimated at this time, but the
Subsidiary believes its maximum loss would be US$414,000, plus interest and court costs. No
assets of the Subsidiary have been seized by KIAT as a result of
this lawsuit.
During the coming weeks, we plan to continue to work with
investors and our creditors to assess various financial
alternatives. We expect to report again soon regarding our
recapitalizing and/or restructuring plans.
About Sollensys Corp.
Sollensys Corp. was incorporated in Nevada on September 29,
2010 as Health Directory Inc. and on July 30, 2013 completed a name change in
anticipation of a merger. On September 14,
2013, an agreement was executed to acquire Sollensys
Corporation - a South Korean corporation, which was incorporated on
May 27, 2010. Sollensys Corporation
was formed as a manufacturer of the physical components of touch
screens used in cellular communications products such as the
iPhone, iPad and Android phone.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
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or future financial or operating performance and other statements
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SOURCE Sollensys Corp.