b). MANAGEMENT RESPONSE TO REPORT OF “BEDROCK” LAWSUIT – Although Company has not been served nor has received any direct communications in the above matter, Company has been advised through shareholders that a legal action has been filed in California by Bedrock Ventures against Company, ostensibly seeking a return of the portion of funds provided to Company by Bedrock. As previously disclosed in multiple corporate filings, it has been Company’s position that Bedrock has not fulfilled its financial obligations to the Company, although all of the considerations required from Company have been paid to Bedrock. Accordingly, and without the benefit of reviewing the Bedrock action,
it remains the position of Company that Bedrock failed to fund the full investment banking obligation of $1.5-million, and therefore owes money (or a return of shares) to Company.
In order to preserve the Company’s legal position, defenses and counter-claims against Bedrock, no further details will be posted until such time, if ever, that Company is served this lawsuit and files a response and counter-claim.
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