2.3.2007: Meldung: Ethanex Energy, Inc.: Disclosure by Outside Legal Counsel Relating to Trading Activity in Its Common Stock

BASEHOR, Kan.----Ethanex Energy, Inc., a renewable energy company whose mission is to become the ethanol industry"s low-cost producer, today announced that it has learned of potential unauthorized trading of certain shares of its common stock through accounts allegedly controlled by a former partner of a law firm that has represented Ethanex.

The Company said that the lawyer, Louis Zehil, who was a partner at McGuireWoods, LLP, is alleged to have acquired control of 3 million shares of the Company"s common stock and warrants to purchase an additional 3 million shares as part of an August 2006 private placement by the Company of 20 million shares of common stock and 20 million warrants. The Company has been advised by McGuireWoods that some or all of the shares alleged to have been under Mr. Zehil"s control were issued without a required restrictive legend and that 3 million of those shares were subsequently traded in violation of applicable securities laws.

Mr. Zehil is no longer acting for the Company. McGuireWoods, which has served as the Company"s regular outside securities and corporate counsel, has advised the Company that Mr. Zehil is no longer a partner with that firm and that the firm has reported the matter, as well as similar matters involving six other companies, to the Securities and Exchange Commission. According to an Associated Press report, the SEC today filed a securities fraud lawsuit in New York City against Mr. Zehil and entities he is alleged to control in connection with these matters.

The Company has initiated a review of these matters and has retained Kirkland & Ellis LLP to assist it. In addition, the Company is in the process of transitioning its outside legal representation.

The Company has on file with the SEC a registration statement on Form SB-2 covering the resale of up to 41 million shares of its common stock (including 18.5 million shares covered by warrants), including shares owned by entities alleged to have been controlled by Mr. Zehil. The registration statement has not been declared effective, and the Company is working to determine the relevant facts so that it can amend the registration statement as necessary.

About Ethanex Energy, Inc.

Ethanex Energy, Inc. is a renewable energy company whose mission is to become the ethanol industry"s low-cost producer. The company expects to achieve this industry position through the application of next-generation feedstock technologies and use of alternative energy sources. Ethanex Energy is currently developing three ethanol production facilities located in the mid-west, with a combined production capacity of approximately 400 million gallons of ethanol per year. The Company expects these three plants to be operational in 2008. Ethanex Energy is concentrating its geographic focus in areas that allow access to abundant supplies of corn, alternative energy sources, transportation infrastructure and the potential for expedited permitting. Ethanex Energy"s acquisition and brownfield development strategies afford it rapid capacity development with significant operating cost advantages. The Company"s senior management has over eighty years of experience in the energy sector including the design, construction and operation of hundreds of power generation facilities. Ethanex Energy is based in Basehor, Kansas with offices in Santa Rosa, California and Charleston, South Carolina. For more information about Ethanex Energy, visit www.ethanexenergy.com.


Contact:

Ethanex Energy, Inc.
Bryan Sherbacow, Chief Operating Officer
843-724-1555
b.sherbacow@ethanexenergy.com
www.ethanexenergy.com
or
Strategic Growth International
Investor Relations:
Jennifer K. Zimmons, Ph.D.
212-838-1444
jzimmons@sgi-ir.com
www.sgi-ir.com

Source: Ethanex Energy, Inc.
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