The YBM Magnex Files Adrian du Plessis ... - Deep Capture

Indeed, Miller, Tate uncovered a ``third'' version which had been created by YBM's
management and showed sales to non-existent United States customers.
8. During 1996 and 1997, United Trade effected substantial purchases and resales of samarium
and neodymium magnets. These transactions ... played a greater and greater role in YBM's
revenues and profits in 1996 and 1997. ... Miller, Tate was never supplied with adequate third
party documentation to demonstrate the legitimacy of these purchases and resale transactions.
9. United Trade also effected substantial purchases and sales of diesel oil during 1996 and
1997. ... Despite repeated requests, Miller, Tate was never provided with adequate evidence of
the existence of the diesel oil or the legitimacy of these transactions. ...
10. Miller, Tate has been unable to satisfactorily resolve the issues raised by Deloitte & Touche
and the OSC relating to technology contracts, equipment upgrades, repair and maintenance
contracts, plant acquisition agreements and other capital contracts entered into by United Trade
during 1997. Notwithstanding the significance of these transactions, Miller, Tate was not
provided with adequate supporting documentation to establish their legitimacy. Further concerns
have been raised by the nature and extent of the apparent inter-relationships among the parties
to these transactions.''
The directors are concerned about the accuracy of YBM's prior financial results, including for the
years ended December 31, 1996 and 1997.
Conclusion
On the basis of the foregoing the board believes that shareholders of YBM have no reasonable
prospect of being able to sell their YBM shares and no means of liquidating their investment in
YBM, other than through a distribution made to them by YBM in respect of their shares.
In all the circumstances, the directors believe that an international accounting firm of the stature
of E&Y, which has offices throughout the world, would be better able to preserve and realize on
the assets of YBM than its current board of directors. Therefore, the directors have tendered
their resignations as directors of YBM, conditional upon E&Y's appointment as receiver and
manager of YBM.
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For further information: G. Wesley Voorheis, Chairman, (416) 947-1400
begin_of_the_skype_highlighting (416) 947-1400 end_of_the_skype_highlighting
(2nd YBM release of the same date)
NEWTOWN, PA, Dec. 8 /CNW/ - YBM Magnex International, Inc. (``YBMI'') announced today
that Ernst & Young YBM Inc. has been appointed by the Alberta Court of Queen's Bench as the