Subject: Re: Applied Digital sues IBM Credit |
Author:
Bobz
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Date Posted: 07:37:59 03/13/03 Thu
In reply to:
ADSX baghholder
's message, "Applied Digital sues IBM Credit" on 05:10:58 03/08/03 Sat
And now everyone in the industry is copying, this micro chip to every aspect of life, cloths, animals, geeze.
you are a bag holder ,
>Posted on Sat, Mar. 08, 2003
>
>Applied Digital sues IBM Credit
>BY BEATRICE E. GARCIA
>bgarcia@herald.com
>
>Applied Digital Solutions has sued IBM Credit Corp.,
>alleging that the IBM unit was fraudulently trying to
>acquire the rights to implantable ID microchips used
>in humans and that it conspired to derail a financing
>deal.
>
>The suit, filed Thursday in Palm Beach County Circuit
>Court, also alleges that IBM Credit is trying to
>acquire the technology and intellectual property owned
>by Digital Angel Corp., a company that is 75 percent
>owned by Applied Digital. Digital Angel holds the
>patents on VeriChip.
>
>PAYMENT DEADLINE
>
>Applied Digital was facing a payment deadline Thursday
>from IBM Credit for $46.2 million. Applied Digital had
>missed the original due date of Feb. 28.
>
>In a filing with the Securities and Exchange
>Commission Friday, Applied Digital said it made no
>payment to IBM Credit on the Thursday deadline and it
>hasn't renegotiated its financing agreement with IBM.
>
>Applied Digital officials couldn't be reached for
>comment on the suit or whether they made any payment
>to IBM Credit Friday.
>
>Applied Digital, which is based in Palm Beach,
>disclosed in the suit that it was working to arrange a
>$20 million cash infusion from Trinity Capital, a San
>Francisco-based investment firm. A portion of the
>funds, $13 million, would have gone to IBM Credit, the
>suit indicates.
>
>Applied Digital says an IBM Credit official called
>Trinity and indicated that he and IBM ``didn't trust
>[Applied Digital] management and even if Trinity
>funded ADS, the company would still end up bankrupt.''
>
>Applied Digital claims that as a result of the calls
>from Bruce Gordon of IBM Credit to Trinity, the
>financing negotiations ended and the company received
>no funds from the investment firm.
>
>Trinity had no comment on the allegations in the
>lawsuit.
>
>The suit also alleges that IBM contacted officials of
>Digital Angel and told them they shouldn't be
>concerned about Applied Digital's ''impending demise''
>and ``IBM would undertake whatever activities are
>necessary to insure the success of Digital Angel
>Corp.''
>
>IBM Credit didn't return a call for comment on the
>allegations in the lawsuit.
>
>VERICHIP ON `TODAY'
>
>Digital Angel holds patents on the technology used in
>VeriChips, the implantable ID microchip for use in
>humans that Applied Digital began to market last
>spring.
>
>Digital Angel also markets microchips that can be used
>to tag pets, livestock and other animals. It also
>produced a watch-like device that combined
>radio-frequency, global satellite positioning, and
>wireless technology to track people.
>
>Applied Digital, which had one of the first implants
>of the VeriChip broadcast live on NBC's Today show in
>May, has an outstanding balance of $77.2 million on a
>credit line agreement with IBM Credit.
>
>The payment that's now due consists of $29.8 million
>in principal and $16.4 million in interest and
>expenses. If IBM doesn't get paid, it could demand the
>liquidation of a trust that holds more than 19 million
>shares of Digital Angel to recoup some of its money.
>
>Applied Digital's 75 percent stake in Digital Angel,
>19.6 million shares, is placed in a trust that can be
>liquidated if the company fails to meet its
>obligations to IBM Credit.
>
>In the SEC filing, Applied Digital said if IBM Credit
>were to enforce its rights against the collateral
>securing these obligations, ``there would be doubts
>that the company would be able to continue operations
>in the normal course of business.''
>
>Digital Angel shares rose 5 cents Friday to close at
>$1.40. Applied Digital shares fell 9 cents to 18 cents
>on high volume.
>
>Applied Digital also claims in its suit that IBM
>engaged in a conspiracy to commit fraud, which
>violated civil racketeering statutes.
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