SAN FRANCISCO, Nov. 8, 2005 (PRIMEZONE) -- Forte' Capital Partners announced today that the Delaware Chancery Court has granted its request for a Status Quo Order (SQO) on SmartVideo Technologies (OTCBB:SMVD). The SQO prohibits SmartVideo's current management from taking any actions outside the ordinary course of business without giving prior written notice to Forte' Capital Partners. Prior notice will be required for such actions as issuance of additional shares, raising of equity capital, or selling all or substantially all of the company's stock or assets. In addition, the SQO requires SmartVideo to preserve the business records and assets of the Company, leaves the incumbent management in place, and bars communication between Forte' Capital Partners and SmartVideo.
The Court also set a hearing for November 21st, 2005, to determine whether Forte' Capital Partners' proxy solicitation -- whose record date is August 29th, 2005 -- was successful in obtaining the approval of a majority of SmartVideo's shareholders for its proposals to replace the company's current Board of Directors and to amend the company's By-Laws. In a press release dated October 26th, Forte' Capital Partners announced that they had obtained the majority vote for the proxy solicitation, but this is now being contested by the management team they are seeking to replace.
Forte' Capital Partners' managing member Daniel McKelvey commented, "We are very confident that we obtained the majority vote required under Delaware Law. We look forward to the proceeding on the 21st of November, and then to building shareholder value with our new management team."
Forward Looking Statements
This press release may constitute "forward-looking" statements including the goals of the new board of directors. Additionally, words such as "believe," "estimate," "project," "intend," "expect," or similar expressions may constitute "forward-looking statements." These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, Forte' Capital Partners undertakes no obligation to update these statements for revisions or changes after the date of this release.