The Xmark Opportunity Funds Sue CepTor and its Chairman/CEO for Breach of Contract In Connection with January 2005 Financing Tra
09 Agosto 2005 - 4:07PM
PR Newswire (US)
STAMFORD, Conn., Aug. 9 /PRNewswire/ -- On July 26, 2005, the Xmark
Opportunity Funds filed a Complaint in Federal Court in Manhattan
alleging, among other things, breach of contract, against CepTor
Corporation (OTC.BB: CEPO) and its Chairman and CEO, William H.
Pursley. When the Xmark Opportunity Funds invested in CepTor in
January 2005, they acquired unregistered securities that could not
be sold in the market until the Company had the Securities and
Exchange Commission declare effective a "resale" registration
statement covering those securities. In the definitive transaction
documents, the Company promised that it would use its "best
efforts" to have that registration statement declared effective by
the SEC. The Xmark Funds assert in their lawsuit, among other
claims, that the Company did not use its "best efforts" to have the
registration statement declared effective by taking over six months
to do so. The Xmark Funds further contend that this intentional
delay has caused them damage due to, among other things, the
changes in the market price of CepTor's stock during that long
delay period. Mitchell D. Kaye, Chief Investment Officer of the
Xmark Opportunity Funds, commented, "honoring obligations like the
registration provisions of an investment is a cornerstone of
gaining investor trust and attracting capital to a public company.
Deliberately failing to honor contractual responsibilities like
this casts a dark shadow over the management of CepTor and its
integrity." DATASOURCE: Xmark Opportunity Funds CONTACT: Mitchell
D. Kaye, Chief Investment Officer of Xmark Opportunity Funds,
+1-203-653-2500
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