COLORADO SPRINGS, Colo., Oct. 26, 2004 (PRIMEZONE) -- Maximum Dynamics, Inc. (OTCBB:MXDY) announced today that it has, at its own request, withdrawn its SB-2 filing with the Securities and Exchange Commission. The company felt a press release to announce this was needed in order to clarify the erroneous second paragraph in the request.
The filing was pulled for three main reasons. First, the approval process for the filing to go effective is taking considerably longer than expected. Secondly, management has continued to receive negative feedback from its shareholders about the filing and management took that seriously into account. Lastly, the delays in the effectiveness of the filing have caused management to aggressively explore other more favorable financing.
"We have experienced a lot of resistance from our shareholders from the time we filed the SB-2," said Eric Majors, CEO of Maximum. "Our current sales of Tagnet in Denmark and the pilots in which we are engaging have put us under a tremendous amount of pressure to find alternate sources of financing in light of the equity line not being available yet. We are now starting to have some success along these lines. When you look at the pressure from the shareholders, these new sources and the added costs we anticipated due to the length of time it would take to get this filing effective, it just made business sense."
Management is considering whether it will file another SB-2 in the future. In the meantime, the company is focused on delivering on orders and pilot projects for which management believes it has found other means of financing.
"We appreciate the relationship we have with Cornell and the assistance they have given us to date," said Joshua Wolcott, COO and Interim CFO of Maximum. "The decision is in no a way a reflection upon them. Rather, the entire reason we agreed to the equity line is that we foresaw our need for money to finance the pilot projects we have now secured. Without the filing being effective and having access to those funds, it doesn't make sense to continue spending money on the filing. We still intend to repay the convertible debenture we have with Cornell and are devising a plan to do so."
For more information on Maximum Dynamics, visit the company's website at http://www.maximumdynamics.com.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Maximum Dynamics assumes no obligation to update the information contained in this press release. Maximum Dynamics' future results may be affected by its ability to continue to provide solutions for its projects on which it currently works; its acquired real-time tracking technology; its acquired distribution rights for mobile point of sale solutions and other technology solutions it utilizes to service its projects; its dependence on procuring highly competitive logistics, point of sale, banking and energy contracts; its dependence on hiring and retaining qualified professionals; potential fluctuations in its quarterly operating results; its dependence on certain key employees; and its ability to timely and effectively integrate the businesses it may acquire.