ABCP DetailsThen the other shoe dropped. Given the current state of the stock market. Anyone
holding WEW is far more likely to get CRUSHED than benefit. I wish the longs hope.
For myself I sold all of my WEW holdings because management has not been telling
shareholders the truth and nothing but the truth. The ABCP was the last straw for me,
and I am glad that I did not get put into the house of pain (I can do that well enough
on my own thank you very much), but when management does not disclose critical information
especially with their past performance, I say be very very careful.
Good Luck
CJ
MarketwireWebTech Wireless Inc.April 25, 2008 - 08:56:35 PMWebTech Wireless Provides Details on ABCP ExposureVANCOUVER, BRITISH COLUMBIA--(Marketwire - April 25, 2008) - WebTech WirelessInc. (TSX:WEW), a leading provider of location-based and fleet Telematicsservices, today announced that it is holding $6 million of Asset BackedCommercial Paper ("ABCP") in SIT Trust III, Series A Notes. As a result of theMontreal Accord and the result of certain Crawford Commission driven courtproceedings recently decided in the Ontario Superior Court, the Companyexpects to receive new notes ("Settlement Notes") in exchange for its existingSIT III Series A Notes.The Company anticipates that the Settlement Notes will include three classesof notes having the following par values of the SIT III Series A Notes; ClassA1 and A2 Senior Notes - 93.4%; Class B Notes - 3.6%; and Class C Notes - 3%.The extent to which the Company may suffer a loss on the Settlement Notes isdifficult to quantify. The Company estimates, based on these figures, it willsuffer a loss of at least $186,000 being the par value the Class C Notes(which are projected to have little or no market value), as well as a loss ofpreviously accrued interest on the SIT III Series A Notes of approximately$140,000. In addition, the Company will book a yet to be determined "Mark toMarket" loss upon issuance of the Settlement Notes, the immediate tradingvalue of which it is unable to estimate at this time."Until now, we have relied on written and verbal representations from thebrokerage firm which sold us this paper that we would be safe from any loss onthis investment," said Scott B. Edmonds, CFO of WebTech Wireless. "It has nowbecome apparent that we can no longer rely on these assurances. Given ourbelief that we would be made whole by our broker and thus avoid any loss wehave not previously announced this matter. We will provide additionalinformation regarding the value of our ABCP as we are able and as we continueour conversations with our auditors and lawyers. For the time being however,we have more than sufficient liquid assets to meet our short and long termneeds."The Company last week filed a Motion with the Ontario Superior Court to beexcluded from the Creditor Release proposed under the Montreal Accord, and isconsidering further legal actions against Canaccord Capital, the brokeragefirm which sold the Company this investment.About WebTech Wireless Inc.