SOURCE: McKenzie Bay

December 10, 2007 16:17 ET

McKenzie Bay International Ltd. (MKBY) Appoints New Chairman and Reports Unauthorized Stock Issuances

MIDLAND, MI--(Marketwire - December 10, 2007) - McKenzie Bay International Ltd. (PINKSHEETS: MKBY) believes that approximately 30 million shares of its common stock were issued by its transfer agent based upon instructions given to the transfer agent by Gary Westerholm.

On December 7, 2007, Mr. Westerholm was replaced by John Sawarin as the Chairman of MKBY's Board of Directors. On the same date Mr. Westerholm resigned as a director of MKBY.

Mr. Westerholm was not authorized to give any instructions to the transfer agent on behalf of MKBY. In addition, in connection with the issuances Mr. Westerholm certified that certain resolutions authorizing the issuances of the shares had been adopted by MKBY's Board of Directors. The resolutions were not, however, adopted by the Board of Directors and none of the shares should have been issued. Inclusive of the improperly issued shares, MKBY has approximately 141 million shares of outstanding common stock.

Certificates representing approximately 25 million of the improperly issued shares did not contain any legend restricting their transfer or subsequently had the legends removed pursuant to instructions given to the transfer agent by Mr. Westerholm.

Although MKBY intends to vigorously seek the return of the improperly issued shares and to hold Mr. Westerholm accountable for his actions, there can be no assurance that any of the shares will be returned or that MKBY will be able to realize monetary damages.

MKBY and its subsidiaries, including Windstor Power Co., have been pursuing sources of capital and intend to continue to do so. There can be no assurance, however, that any capital will be available on terms not unfavorable to them, if at all. MKBY and its subsidiaries do not presently have the financial resources to engage in any business activity.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.

Contact Information

  • Contact:
    Yes International, Inc.
    757-306-6090