Highline Technical Innovations, Inc. Takes Steps to Eliminate Convertible Debt
February 02 2011 - 8:37PM
Marketwired
Highline Technical Innovations, Inc. (PINKSHEETS: HLNT) announced
today that it is taking further steps to eliminate the company of
all debt. In March 2010, HTI was sued by the PIPE funder NIR Group
for notes that were transferred to HTI, formerly Systems Evolution,
Inc. in December 2008. HTI contends that the notes were transferred
to HTI to defraud the shareholders of the company. In January 2011,
HTI filed a countersuit for both compensatory and punitive damages
against NIR and other 3rd parties. The company has retained the
services of Sheppard Mullin, a New York based law firm, as
representation for the case and the management of HTI feels they
have a very good argument to make. The company's financial filings
with pinksheets reflect a convertible note for the NIR group in the
amount of $5,710,403. The NIR note amount has been offset with an
entry in "other assets" reflecting that proceeds were never
received for an asset that the company contends doesn't exist.
Two smaller notes, which originated in 2004, were held by the
Whalehaven Fund and Truk Fund, respectively. In January 2011,
Whalehaven Fund filed suit against HTI for immediate injunction and
relief.
HTI management worked diligently with the Whalehaven partners to
agree upon a settlement that was acceptable to both parties.
Whalehaven Fund would only agree on a settlement which consisted of
repayment with shares of the company's common stock. HTI CEO
Charlton Coats stated, "This lawsuit was unfortunate, but we have
to accept their position on a settlement of shares rather than
cash. HTI contested the note based on the assumption that it was
directly tied to the NIR lawsuit. However, at this time and after
exhaustive research, we concluded that Whalehaven's claims to the
validity of this particular original note were legitimate. The
issuance of 105,000,000 (one-hundred and five million) shares
satisfies the debt in full. Both parties have filed the appropriate
documents with the courts notifying them we have reached a
settlement and wish to have this lawsuit quashed. Our management
team and board of directors felt that it was in the best interest
of our company and protecting our shareholders from any other
possible unforeseen outcomes. This convertible note has now been
removed from the company's balance sheet. Additionally, we have
reached a settlement with the Truk Fund and documents are being
drafted for signatures by both parties. Once this settlement is
executed, we will notify our shareholders immediately. We are
working hard to eliminate debt from our company and completing the
settlements with Whalehaven and Truk are a critical step in that
direction."
Highline has enlisted the help of SCORE in navigating the growth
pains and challenges the company has faced. SCORE or Service Corps
of Retired Executives was founded in 1964 and has 364 chapters
nationwide. They provide advice and leads to small businesses with
the drive to succeed. HTI has received invaluable counseling from
SEC arbitrage specialists to marketing executives, and fully
embraces the partnership that has developed with them.
http://www.score.org/index.html
http://www.scribd.com/doc/47989941/4-21-2010-NIR-Summons-and-Complaint
http://www.scribd.com/doc/47991035/4-21-2010-NIR-Summons-and-Complaint-HTI-Counterclaims
http://www.scribd.com/doc/47988789/Whale-Haven-Complaint
About Highline Technical Innovations, Inc.:
HTI www.highlineinnovations.com is comprised of three
subsidiaries, Highline Hydrogen Hybrid, Bo-tie Manufacturing and
Hoss Motorsports. Highline Hydrogen Hybrids (HHHI)
www.highlinehybrids.com manufactures performance fuel systems that
focus on reducing harmful emission levels to meet and exceed EPA
quotas. Its effect on horsepower and fuel economy makes it good to
be green. Bo-tie Manufacturing www.highlinebeds.com produces high
grade aluminum truck beds that supersede conventional steel models.
At half the weight, Bo-tie beds provide greater fuel economy or
larger payloads. Hoss Motor Sports www.hossusa.com is focused on
the production of OFF-ROAD vehicles that are built to withstand the
punishment of every day commercial use and are customized to meet
the needs of special interest groups. HTI is a publicly traded
corporation, dedicated to producing innovative, high quality
products that allow today's motorists to "Do More... With
Less."
Contact: Charlton Coats 479-267-6000
info@highlineinnovations.com
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