IRVINE, Calif., May 23, 2005 (PRIMEZONE) -- EntreMetrix, Inc. (OTCBB:ERMX) today announced that the company has reached a settlement agreement with the company's former President to discontinue the case against the company.
On August 19, 2004, a civil complaint for breach of contract, declaratory relief, fraud, rescission and appointment of a receiver was filed with the Superior Court of the State of California for the County of Orange, entitled Richard McKinley v. EntreMetrix Corporation, et al., Case No. 04CC08721. The complaint was filed by Richard McKinley (McKinley), the former president of EntreMetrix Corporation (the Company), after the Company's board of directors had terminated McKinley for cause from all officer positions formerly held by him and had cancelled the shares issued to McKinley in connection with the Company's acquisition of all of the outstanding stock of EnStruxis, Inc. that were to be held on behalf of the Company for use in future acquisitions. McKinley sought, among other things, damages and a rescission of the Company's acquisition of all of outstanding capital stock of EnStruxis, Inc. (formerly known as EntreMetrix Corporation) pursuant to the terms and conditions of that certain Stock Purchase Agreement by and among the Company, the plaintiff and EnStruxis, Inc. McKinley sought, without notice to the Company and without an opportunity to defend by the Company, a broad temporary restraining order, including the appointment of a receiver. The Court denied a broad temporary restraining order, but granted a limited order.
A settlement agreement was reached by all parties and pending approval by the court calling for the termination of the civil case and mutual release of liability for all parties. For good and valuable consideration of payment to Richard McKinley by EntreMetrix Corporation of the total sum of $350,000.00, to be paid over thirty-six (36) months with the first payment due on June 1, 2005, and without any interest accrued to the unpaid balance, and secured by personal promissory note by both Scott Absher and George Lefevre, McKinley, will file a dismissal of the entire action, with prejudice, as to all defendants identified in this agreement including EntreMetrix Corporation, Scott Absher, George Lefevre, Mark Absher, and The Estate of Arthur Lefevre.
Further, in exchange for a dismissal of the cross-complaint by EntreMetrix Corporation against Richard McKinley, McKinley will surrender the remaining 18,850,000 shares of EntreMetrix Corporation (formerly known as "Missouri River and Gold Gem Company") issued in Richard McKinley's name to the Company or their representative on June 1, 2005. Further, the release also calls for the cancellation of any notes issued to the Company by Richard McKinley. Lastly, EntreMetrix cross-complaint against Laurie McKinley will be dismissed, with prejudice, in exchange for a promise to return all property and documents still in her possession or control. This stipulated settlement was signed by all parties and their counsel in a recent mediation and is awaiting court approval of the settlement between the parties. The settlement was made without any admission of liability on the part of EntreMetrix or its officers and directors.
About EntreMetrix
Based in Irvine, California, EntreMetrix is a provider of essential structural and financial support services to small business clients throughout the United States. The company's Business Process Outsourcing (BPO) services create value for clients by providing expertise in the areas of employee and financial management -- eliminating the need for clients to manage non-core functions. For many clients, the EntreMetrix relationship results in access to structural and financial resources needed to sharpen business focus and accelerate growth. For more information on EntreMetrix, Inc. visit the company's Web site at www.entremetrix.com or contact Scott W. Absher (888) 798-9100. The Company's corporate offices are located in Southern California at 18101 Von Karman Avenue, Suite 330, Irvine California 92612.
Safe Harbor Statement: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "ACT"). Statements in this release that relate to the Company's plans and strategies, as well as management's expectations about new and existing products and services, acquisitions and opportunities, market growth, demand for acceptance of new and existing products and services are forward-looking statements. In particular, when used in the preceding discussion, the words "estimated," "believe," "optimistic," "expect," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in forward-looking statements. Such risks and uncertainties include, but are not limited to, unfavorable market conditions, increased competition, limited working capital, and failure to implement business strategies, actions by regulatory agencies, and other risks and uncertainties that could cause actual results to differ materially from historical or anticipated results due to many factors. The Company undertakes no obligations to publicly update or revise such statements. For more details, please refer to the Company's Securities and Exchange Commission filings.