TITUSVILLE, Fla. , April 3, 2007 (PRIME NEWSWIRE) -- The Board of Directors for E'Prime Aerospace Corporation (Pink Sheets:EPEA) voted on March 9, 2007 to authorize an extensive, internal investigation into the past actions of Bob G. Davis and Betty Scott Davis during their tenure as officers and directors of the public company, based on information that became available during the 2006 annual audit.
That investigation is on going at this time, based upon preliminary issues raised as part of the 2006 audit, Mr. Davis was asked to submit his resignation which Mr. Davis chose not to respond to.
One of the more serious issues revolves around the statement made by Mr. Davis, and attested to in audits by Betty Scott Davis, on behalf of the company that states, "In 1998, the ESM-9, E'Prime's first stage motor, was eliminated from the START treaty." Recently, it was brought to the attention of the Board that this statement is inaccurate; however, members of the Board are working to meet with the START Compliance Review Group to resolve this issue and believe it will be resolved shortly.
Additionally, M Star Global Communications has assured E'Prime that they are willing to continue with the Memorandum of Understanding (to place up to four Ka-band Satellites in GEO) signed February 8, 2007, providing the Board the time necessary to resolve the START issue.
E'Prime's board members recently learned that the company has been unable to obtain funding with the present structure of almost a billion issued and outstanding shares and has approved a 1 for 20 reverse. The reverse will not only assist in enabling the company to move forward with its projects, but will also help in obtaining new investment capital.
E'Prime Aerospace Corporation has been in discussion with various lenders over the past few months and hopes to be able to close on start up funding in the near future as the funding prospects look extremely promising.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the following; the reverse stock split and the impact and effects of the reverse stock split, the investigation into the actions of former officers and planned financing. Such statements are based on current expectations and involve a number of known and unknown risk and uncertainties that could cause E'Prime's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important facts that could cause or contribute to such differences include; combination of additional debt and primarily equity financing and to successfully complete the remaining research and development of its launch technology, determine and implement its overall marketing strategy and establish a viable schedule for the testing and ultimate launching of commercial payloads, as well as other factors that are discussed in E'Prime's filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and E'Prime undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.