Maxxcapp Corporation

Maxxcapp Corporation

May 01, 2007 16:08 ET

Maxxcapp Announces Halt Trading Request and Update on Business Situation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - Maxxcapp Corporation (TSX VENTURE:MXP) (the "Company") requested a halt on April 25, 2007 to announce the Company is unable to meet the minimum TSX-Venture regulations for representation on its board of Directors and has missed TSX-Venture regulations for filing its 2006 Audit.

Many of the Company's previous investments in its past subsidiaries HouseSmart Ventures Inc., Accurate Infosystems Inc. and Quantex Capital Corporation did not work out as anticipated, and as such, led to the Company accumulating debts that it could not sustain without new capital financing. With accumulated debts of over $1 million dollars held by creditors such as KPMG LLP, Bank of Montreal and numerous individual debt note holders, securing new capital and management personnel became increasingly prohibitive.

Additionally, there are three writs filed against the Company (the defendant) for debt notes which have received favorable ruling for the plaintiffs in BC Supreme Court in the amount of $83,179.63 plus accrued interest and legal costs.

On April 30, 2007, Maxxcapp Corporation accepted a settlement offer of US$76,049.70 for debt it held with Quantex Capital Corporation for 760,467 common shares of Quantex, a listed company trading on the Nasdaq OTC:BB (Pink Sheets).

Maxxcapp continues to have no active business as management's priority for the past 4 to 5 months was to reorganize the Company and arrange financing pursuant to TSX-Venture rules. Additionally, effective April 30, 2007, Eunho Lee has resigned as the Company's President/CEO and from the Company's Board of Directors and effective April 30, 2007, Craig Thomas has resigned from the Company's Board of Directors, leaving the Company without a Board of Directors. As they have done since December 2006, Eunho Lee and Craig Thomas will work on behalf of the shareholders and creditors in efforts to reorganize the Company and assist in the transitional process, however will do so from an arm's length perspective.

Maxxcapp Corporation

PO Box 8219

Victoria, BC

V8W 3R8

We seek safe harbor.

This news release may contain forward-looking statements that are based on management's current expectations, which are subject to known and unknown uncertainties and risks. This could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Maxxcapp is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Maxxcapp Corporation
    Eunho Lee
    (250) 415-8682