MIAMI BEACH, Fla., July 28, 2006 (PRIMEZONE) -- TX Holdings, Inc. (Pink Sheets:TXHG) regrets to announce that on Monday, July 24, 2006, it formally commenced legal proceedings against its former CFO, Darren Bloom (TX Holdings, Inc. v. Darren Bloom, Case No. 06-14396CA04, 11th Judicial Circuit Court, Dade Co. Florida) pursuant to an ongoing dispute with Mr. Bloom (the "Defendant").
On or about July 21, 2005, the Defendant executed an Employment Agreement, with a term of 3 years wherein Defendant received 2 million shares of common stock of the Company. Less than one year after the execution of the Employment Agreement, the Defendant voluntarily resigned from all positions he had with the Company. Accordingly, by his resignation, the Defendant terminated all obligations the Company had to perform under the Employment Agreement.
Subsequently, the parties executed a termination agreement on or about March 27, 2006 ("Termination Agreement") and Defendant has failed to comply with the terms of the Termination Agreement. As a result, the Company is seeking the return of the 2 million shares.
About TX Holdings, Inc.
TX Holdings, Inc. is an emerging oil and gas exploration, development and production company focusing on opportunities in Texas, Louisiana and Oklahoma. TX Holdings is currently exploring a number of additional potential acquisition targets throughout the region.
Safe Harbor Statement
The information provided in this Press Release does not constitute an offer or a solicitation of an offer for the purchase or sale of any shares or other securities of TX Holdings, Inc. There are substantial risks associated with investing in development stage energy exploration companies. No securities commission or similar authority has in any way approved any of the information contained in this press release.
Forward-looking statements: This press release and other statements by TX Holdings, Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.