Kasten Chase Applied Research Limited

Kasten Chase Applied Research Limited

May 31, 2006 08:20 ET

Kasten Chase Announces Assignment in Bankruptcy

TORONTO, ONTARIO--(CCNMatthews - May 31, 2006) - Kasten Chase (TSX:KCA), a leading developer of encryption and key management solutions for data storage, announced today that it is ceasing operations.

The Company has been engaged in discussions with a number of parties over many months in an effort to rectify the Company's financial situation and improve its long term business prospects. In particular, the Company was seeking either an expression of interest in the acquisition of the Company or a reseller arrangement with an established storage vendor supported by a significant product commitment for its mainframe tape encryption and key management solution. The Board and management have now concluded it is unlikely any such transaction beneficial to the Company or its stakeholders could be completed on a timely or profitable basis. Accordingly, the Board has determined it is in the best interests of the Company to discontinue operations immediately.

The assets of the Company will be assigned to a trustee in bankruptcy for the benefit of its creditors. Such assignment is expected to be executed later today at which time each of the directors of the Company will resign.

Contact Information

  • Kasten Chase
    Beverly Roberts
    (905) 238-6900 ext. 3315