SOURCE: Highline Technical Innovations, Inc.

February 02, 2011 20:37 ET

Highline Technical Innovations, Inc. Takes Steps to Eliminate Convertible Debt

FARMINGTON, AR--(Marketwire - February 2, 2011) - Highline Technical Innovations, Inc. (PINKSHEETS: HLNT) announced today that it is taking further steps to eliminate the company of all debt. In March 2010, HTI was sued by the PIPE funder NIR Group for notes that were transferred to HTI, formerly Systems Evolution, Inc. in December 2008. HTI contends that the notes were transferred to HTI to defraud the shareholders of the company. In January 2011, HTI filed a countersuit for both compensatory and punitive damages against NIR and other 3rd parties. The company has retained the services of Sheppard Mullin, a New York based law firm, as representation for the case and the management of HTI feels they have a very good argument to make. The company's financial filings with pinksheets reflect a convertible note for the NIR group in the amount of $5,710,403. The NIR note amount has been offset with an entry in "other assets" reflecting that proceeds were never received for an asset that the company contends doesn't exist. 

Two smaller notes, which originated in 2004, were held by the Whalehaven Fund and Truk Fund, respectively. In January 2011, Whalehaven Fund filed suit against HTI for immediate injunction and relief. 

HTI management worked diligently with the Whalehaven partners to agree upon a settlement that was acceptable to both parties. Whalehaven Fund would only agree on a settlement which consisted of repayment with shares of the company's common stock. HTI CEO Charlton Coats stated, "This lawsuit was unfortunate, but we have to accept their position on a settlement of shares rather than cash. HTI contested the note based on the assumption that it was directly tied to the NIR lawsuit. However, at this time and after exhaustive research, we concluded that Whalehaven's claims to the validity of this particular original note were legitimate. The issuance of 105,000,000 (one-hundred and five million) shares satisfies the debt in full. Both parties have filed the appropriate documents with the courts notifying them we have reached a settlement and wish to have this lawsuit quashed. Our management team and board of directors felt that it was in the best interest of our company and protecting our shareholders from any other possible unforeseen outcomes. This convertible note has now been removed from the company's balance sheet. Additionally, we have reached a settlement with the Truk Fund and documents are being drafted for signatures by both parties. Once this settlement is executed, we will notify our shareholders immediately. We are working hard to eliminate debt from our company and completing the settlements with Whalehaven and Truk are a critical step in that direction."

Highline has enlisted the help of SCORE in navigating the growth pains and challenges the company has faced. SCORE or Service Corps of Retired Executives was founded in 1964 and has 364 chapters nationwide. They provide advice and leads to small businesses with the drive to succeed. HTI has received invaluable counseling from SEC arbitrage specialists to marketing executives, and fully embraces the partnership that has developed with them.

About Highline Technical Innovations, Inc.:

HTI is comprised of three subsidiaries, Highline Hydrogen Hybrid, Bo-tie Manufacturing and Hoss Motorsports. Highline Hydrogen Hybrids (HHHI) manufactures performance fuel systems that focus on reducing harmful emission levels to meet and exceed EPA quotas. Its effect on horsepower and fuel economy makes it good to be green. Bo-tie Manufacturing produces high grade aluminum truck beds that supersede conventional steel models. At half the weight, Bo-tie beds provide greater fuel economy or larger payloads. Hoss Motor Sports is focused on the production of OFF-ROAD vehicles that are built to withstand the punishment of every day commercial use and are customized to meet the needs of special interest groups. HTI is a publicly traded corporation, dedicated to producing innovative, high quality products that allow today's motorists to "Do More... With Less."

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