MINEOLA, N.Y., April 26, 2005 (PRIMEZONE) -- Torbay Holdings, Inc. (OTCBB:TRBY) announced today that the last payment required to meet the company's financial obligations under a Settlement Agreement (Feb 11, 2004) with certain of its debenture holders had been made (and funds cleared) thereby removing the company from that burden and any jeopardy under the agreement and so the company is now clear and unencumbered by debenture debt.
Over the last 12 months TRBY has faithfully and timely paid the settlement agreement, amounting in total to $200,000. The conclusion of this transaction and the extinguishment of this debt not only puts this issue and debenture financing behind the company but also reduces the large monthly cash drain associated with it.
Tom Large, President & CEO stated, "We are obviously delighted to now have passed this point and come out of the other side."
"We have had approaches of similar financing since but believe this is not the instrument of first choice for this company or its shareholders. Consequently we believe the Warrant with the Nutmeg Group agreement, we refer to as a fixed price equity ladder, we believe puts us in the 'driving seat' to finance the growing activities of the company at a predefined, so determinable price and cost and when needed."
"Recent unfortunate delays resulted due to uncertainty as to how this agreement should be posted to our accounts. The transaction could either have been fully expensed or expensed as and when each stage of the agreement was enacted. The impact of expensing the transaction now was to load an additional $846,033 to the loss account increasing it to $1.13M for FY 2004. As we had worked hard to reduce the company's losses from the $875K in 2003 to (net of this expense) less than $300K in FY 2004 we thought it worthwhile to have our auditors fully investigate our options and so an extension was filed. Our auditors sought the opinion of others, which resulted in 'no formal' opinions being received from those asked to opine and so we took our auditors advice as to the handling of this transaction and posted it as an additional loss. Unfortunately this and our auditor's workload at this time of the year conspired, despite their hopes and assertions otherwise, to result in our late filing, for which we apologize."
References to issues cited herein, as forward looking statements, are made in good faith though cannot be relied upon as occurring, achieving an acceptable outcome or contributing towards the business of Torbay Holdings Inc.