Asensio & Company, Inc. believes that Solv-Ex Corporation’s lawsuit against certain short sellers is entirely without merit. We believe that the sole purpose of this lawsuit is to distort the facts. We believe that it is wrong of Solv-Ex to use the courts to attempt to perpetuate its fraudulent stock schemes. We also believe it is wrong for Cleary, Gottlieb, Steen & Hamilton to allow itself to be used in this manner. All payments Cleary, Gottlieb has received come directly or indirectly from investors that Solv-Ex has defrauded. On May 5, 1997 Asensio & Company sent a letter to Mr. Edwin Mishkin, the Cleary, Gottlieb, Steen & Hamilton Managing Partner in charge of the firm’s relationship with Solv-Ex, requesting that he withdraw from the case. Mr. Mishkin has not responded.
Asensio & Company has been advised that it can challenge any attempt by Solv-Ex to obtain any information concerning its Solv-Ex work. Based on this information and the beliefs stated above, we opposed Solv-Ex’s subpoena. Despite this we have agreed to furnish certain documents and to be deposed. All of the information and analysis we possess is damaging to Solv-Ex. All of Asensio & Companyis statements concerning Solv-Ex are entirely supported by Solv-Exis own SEC filings and public statements. Mr. Asensio has agreed to be interviewed on May 22nd.
Asensio has conducted extensive due diligence, fundamental research and technical analysis of Solv-Ex Corporation, its Alberta plant and business plans. Based on this review it issued a strong sell recommendation on shares of SOLV’s common stock. Further, due to its excessive market valuation and overwhelming evidence of fraudulent securities activities, we also recommend that Solv-Ex shares be sold short.
Solv-Ex Corporation (Trading Symbol: SOLVQ) (Price: $8.875)
Short selling involves a risk not associated with the purchase of stock including, but not only limited to, unlimited loss and stock borrowing risks. Additional information is available upon request.