SOURCE: Divine Capital Markets LLC

April 28, 2009 10:51 ET

Patent Rights of Micro Imaging Technology, Inc. (OTCBB: MMTC) Assigned to Secured Creditors; Cease and Desist Notice Issued to the Company by Divine Capital Markets

NEW YORK, NY--(Marketwire - April 28, 2009) - Divine Capital Markets LLC, or Divine Capital, an institutional trading, research and banking firm, announced today certain actions taken on behalf of the holders of Secured Convertible Debentures due 2011, or the debentures, issued by Micro Imaging Technology, Inc. (OTCBB: MMTC), or MMTC, in a 2008 private placement financing.

The debentures are in default and the underlying indebtedness was accelerated on April 9, 2009 but to date remains unpaid. Accordingly, pursuant to the patent security agreement which governs the debentures, collateral was assigned to Divine Capital as agent of the debenture holders as of April 9, 2009. This collateral consists of "any and all patents, patent applications, provisional patent applications, patent disclosures, and all related continuation, continuation in part, divisional, reissue, re-examination, utility model, certificate of invention and design patents, patent application, registrations and applications for registrations, whether in the United States or elsewhere, and all licenses thereof," including, without limitation, the following:

1) USA:     Two patents have been granted, as follows:

            (A) Patent Number 6,421,121, dated 07.16.02.
            (B) Patent Number 6,639,672, dated 10.28.03.

(2) Mexico: Patent, Number 235501, dated 04.04.06.

(3) China:  Patent Number ZL02126213.6, dated October 5, 2005.

(4) Canada: Patent Application Number 2393402, filed July 12, 2002.

The assignments of the two United States patents identified above were recorded by the United States Patent and Trademark Office on April 15, 2009, identifying the debenture holders and Divine Capital, as authorized representative of the secured parties who hold the debentures, as the assignee of these patents.

On April 27, 2009, attorneys for Divine Capital and the debenture holders demanded in writing that MMTC immediately cease and desist all uses of the patents and patent rights comprising the collateral. Accordingly, use of any of such patents or patent rights, by MMTC or third parties, will be subject to claims of intentional patent infringement by the debenture holders. It is anticipated that a press release will be issued detailing the time, place and manner of sale for any public sale of the patents and related rights. The debenture holders are meanwhile pursuing their other legal remedies against MMTC and its board of directors for their willful breach of the debentures and other apparent misconduct.

ABOUT DIVINE CAPITAL: Divine Capital Markets LLC is a boutique institutional brokerage firm with expertise and innovation in trading, research and investment banking.

The firm is recognized for providing institutional portfolio managers, corporations, pension plan sponsors, hedge funs and a short list of accredited investors with high quality trading strategies, research, consulting services and wealth management. Divine Capital Markets LLC is a certified WBENC firm.

Contact Information

  • FOR MORE INFORMATION CONTACT:
    Jason Goldstein
    Senior Vice President, Corporate Finance
    Divine Capital Markets LLC
    212-344-5867
    Email Contact