Implant Sciences Corporation (NYSE Alternext US: IMX), a supplier
of systems and sensors for the homeland security market and related
industries, today announced a favorable ruling on a key motion in its
ongoing litigation with Evans Analytical Group, LLC. The Superior Court
of the State of California, Santa Clara County, has denied a motion by
Evans to attach substantial portions of the Company’s
assets prior to any final judgment on the merits of Evans’
claims.
As previously announced, Evans sued the Company in February 2008,
seeking rescission of the sale of our Accurel Systems subsidiary. No
trial date has yet been scheduled.
Phillip C. Thomas, Implant Sciences’ Chief
Executive Officer, said, "We are pleased by
the Court’s ruling and believe we have
achieved a significant victory in this matter. With the Court’s
decision, we remain free to operate our business without the threat that
our cash and other assets may be frozen; we are also free to continue
with the planned divestitures of our Core Systems subsidiary and certain
other assets so we can focus on our explosives detection business.
Moreover, we believe the litigation with Evans has made it extremely
difficult to raise capital. Now that this immediate threat is behind us,
we will renew our efforts to obtain additional financing.”
Mr. Thomas added, "In reaching its decision
to deny Evans’ motion, the Court stated that
the evidence submitted by Evans did not demonstrate that Evans is more
likely than not to obtain a judgment against us on its rescission
claims. Although the litigation will continue, we are encouraged by this
finding. We continue to believe that Evans’
claims are not justified and we will continue to defend ourselves
vigorously. However, as with any litigation, no assurance can be given
that we will ultimately be successful in our defense against Evans’
claims.”
About Implant Sciences
Implant Sciences develops, manufactures and sells sophisticated sensors
and systems for the Security, Safety and Defense (SS&D) industries. The
Company has developed proprietary technologies used in its commercial
portable and bench-top explosive trace detection systems which ship to a
growing number of locations domestically and internationally. For
further details on the Company and its products, please visit the Company’s
website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements,” as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such statements are
based on management’s current expectations
and are subject to risks and uncertainties that could cause the Company’s
actual results to differ materially from the forward-looking statements.
Such risks and uncertainties include, but are not limited to, the risks
that: an adverse determination in the litigation described above would
have a material adverse effect on our financial condition and results of
operations and could require us to file for protection under bankruptcy
laws; the continuation of this litigation may make it extremely
difficult to raise capital; if the NYSE Alternext US delists our common
stock, it may be extremely difficult to raise capital; if third party
credit is unavailable, our working capital could be restricted and we
may not be able to borrow capital; and other risks and uncertainties
described in the Company’s filings with the
Securities and Exchange Commission, including its most recent Forms
10-K, 10-Q and 8-K. Such statements are based on management's current
expectations and assumptions which could differ materially from the
forward-looking statements.
For further information, you are encouraged to review Implant Sciences’
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K, as amended, for the period ended June 30,
2008. The Company assumes no obligation to update the information
contained in this press release.
