SOURCE: NW Tech Capital, Inc.

August 12, 2008 09:45 ET

NW Tech Capital, Inc. Announces Settlement Agreement With the Securities and Exchange Commission Over Prior Management Activities Between 2002 & 2005, No Civil Penalty and $6.8 Million in Disgorgements Are Waived

VANCOUVER, WA and PORTLAND, OR--(Marketwire - August 12, 2008) - On August 5, 2008, NW Tech Capital, Inc. (OTCBB: NWTT) entered into a settlement with the U.S. Securities and Exchange Commission relating to certain actions of the Company prior to the acquisition of a controlling interest by the current Company's management which occurred in March 2006. The action relates to activities of NW Tech Capital, Inc.'s prior management between 2002 and 2005. The SEC made a determination that the company's previous management had engaged in the use of multiple registration statements on Form S-8 for financing purposes during the period from 2002 to 2005. There were no allegations made against any of the Company's current management or any allegation that any of the activities had occurred subsequent to the acquisition of the controlling interest by the Company's current management. Current management of the Company cooperated fully with the SEC in the investigation of the matter.

Based on the Company's cooperation, and the SEC's acknowledgement that the Company's current management had not engaged in any wrongful behavior and the fact that the current Company had not benefited from the actions and was not in a position to pay any amounts to settle the action, a settlement was reached by the Company and the SEC. The settlement provides for a consent decree permanently restraining the Company from violating Section 5 of the Securities Act of 1933. In connection with the settlement, the Company made certain representations as to their financial condition as of October 25, 2007. Although the settlement provides for disgorgement in the amount of $5,330,198, plus prejudgment interest thereon in the amount of $1,502,535 for a total amount of $6,832,733, it specifically states that the Court is not ordering the Company to pay a civil penalty and the payment of all disgorgement and pre-judgment interest thereon is waived. The only reason that the SEC would seek to collect such amount was if the SEC determined that the Company's representations as to its financial condition were fraudulent or misleading at the time such representations were made. The Company is comfortable that its financial representations accurately reflected the Company's financial position as of October 25, 2007 and accordingly does not believe that there is any possibility that the Company would be required to pay the settlement amount.

James Wheeler, CEO of NW Tech Capital, Inc., stated: "We are very pleased with the outcome of this settlement, it now means that NWTT can move on with its future business plans without the concern of paying for the activities of the company prior to the change of control in March 2006." Wheeler continues: "We will now move full speed ahead on all of our future plans with Teledigit, Inc. and our possibilities in China."

About NW TECH CAPITAL, INC.

NW Tech trades on the OTC Bulletin Board under the ticker symbol "NWTT." For more information on NW Tech Capital contact investor@nwtechcapital.com or visit web site at www.nwtechcapital.com

Certain Information

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of NWTT officials are "Forward-Looking Statements": within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Certain statements in this news release may contain forward-looking information and are based on Management's current expectations, estimates and projections subject to change. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements. Unless legally required, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company disclaims any information that is created or distributed by any outside party and endorses only information that is communicated by its official Press Releases.

Contact Information

  • Contact Information:
    NW Tech Capital, Inc.
    Vancouver, WA
    James Wheeler
    Chairman & CEO
    E-mail: Email Contact