THE WOODLANDS, TX, Aug 01 (MARKET WIRE) --
The Alternative Energy Technology Center, Inc. (PINKSHEETS: AETE)
announced that effective today at the close of business, the Company will
change its name to "Alternative Energy Technology, Inc." and begin
trading under its new symbol (PINKSHEETS: ATNE). In addition, the Company
announced a 1:50 reverse split of its outstanding common shares and an
increase in the number of authorized shares of common and preferred stock
to 500,000,000 and 20,000,000 shares, respectively. The reverse split and
the increase in authorized shares will become effective at the close of
business today as well.
Robert T. Kelly states, "The actions taken on June 23, 2008 and our
subsequent submission to FINRA on June 9, 2008 are the result of Control
Shareholder and AETE New Management having exhausted all avenues to
interdict the conduct of ongoing criminal activities perpetrated by former
officers and/or directors (and their associates) of The Alternative Energy
Technology Center, Inc. f/k/a Mortgage Xpress, Inc." In order to curtail
the sale of fraudulently issued shares of AETE common stock, New
Management of AETE and its Control Shareholder made a decision to reverse
split the common stock on a 1:50 basis. In making this decision the
Company and New Management relied on advice from corporate council and
AETE's Consultant.
"AETE has been in close contact with the Securities Exchange Commission,
FINRA and various state regulatory and enforcement agencies, cooperating
and providing related information ever since Control Shareholder and New
Management discovered the criminal activities of Jonathan Gilchrist,
William Carmichael and their cohorts," stated Mr. Kelly. He went on to
say, "The company and New Management intend to vigorously and
systematically pursue all those that have been engaged, directly or
indirectly, in this illegal activity, which has caused substantial losses
to the company, its investors and stockholders and significant damage to
the reputation of AETE and its business enterprise."
The New Management of AETE would like the complete cooperation of all
shareholders of AETE that purchased shares between December 2007 and July
31, 2008, as related to shares purchased from a Broker or Brokerage firm
touting AETE's stock and AETE's stock touted by individuals, email spam
and investor relations websites.
Associated delays in the FINRA approval of the AETE reorganization were
directly related to demands by Depository Trust Company on two separate
occasions to compel AETE, its Consultant and newly appointed transfer
agent, Securities Transfer Corporation, to generate a letter signed by its
Consultant and transfer agent stating that the fraudulent shares held in
various accounts at Charles Schwab & Co., Inc. (Schwab), Legent Clearing,
LLC (a Schwab company), Aurora Financial Services, LLC and its clearing
firm Penson Financial Services were validly issued. This, not withstanding
the clearly documented facts as presented to all parties showing the
shares to have been fraudulently issued by Jonathan Gilchrist and William
Carmichael under a Reg. D, 504 Offering on or about December 27, 2007. As
a result of the delay by FINRA as well as demands by DTC, AETE has lost
approximately eight weeks of valuable time executing its reorganization
strategy as opposed to developing its business model.
Mr. Kelly stated, "It was discovered during an investigation undertaken by
Control Shareholder, New Management and myself that beginning the first
week of January and continuing into July 2008, AETE had been targeted for
use as a conduit in ongoing criminal activities related to microcap stock
fraud by former officers and/or directors of AETE and their associates.
From on or about February 22, 2008 the Control Shareholder, New Management
and I have been in regular contact with The Securities Exchange Commission
Enforcement Division providing complete documentation on our internal
investigation as it developed. The development of significant information
on the disposition of the Reg. D, 504 stock offering came about through
the analysis of a stock and money-laundering scheme initiated by Jonathan
Gilchrist, William Carmichael, David Mordekhay and Shir Doron of Petach
Tikva, Israel."
Mr. Kelly went on to say, "On information and belief, Jonathan Gilchrist
transferred to Shir Doron shares of the Reg. D, 504 offering. An offer was
then made to the New Management of AETE, by way of David Mordekhay, acting
for an 'investment group out of Amsterdam/Israel' to provide funds through
participation in a Private Placement Memorandum in the amount of $250,000
over a period of 5 months with the first $50,000 provided immediately and
the remaining $200,000 in four $50K tranches. The plan was for the money
for the PPM to be raised through the sale of the stock placed with Shir
Doron during the time when Jonathan Gilchrist was manipulating the stock
volume and value through the use of email spam and "investor relations"
websites using false and misleading information and a website
(www.altenergytechcenter.com) controlled by Jonathan Gilchrist (as
Registrant) and designed by agents of Jonathan Gilchrist. The entire plan
was to fund the PPM with funds from the sale of fraudulently issued Reg.
D, 504 stock, in essence, funding the company with it's own money while
gaining a larger number of shares of stock to be converted at a future
date. Although this plan was interdicted in part, the eight-week delay
referred to above with FINRA and DTC allowed Shir Doron to liquidate
approximately 223,000 shares of fraudulent AETE common stock through the
auspices of Aurora Financial Services, LLC."
As a means of eliminating the negative impact to investors and bona fide
stockholders from the trading of illegal Reg. D, 504 shares and the 1:50
reverse split on bona fide shareholders of record in AETE stock, the
Control Shareholder has decided to gift shares to those bona fide
shareholders of record in a manner and under conditions that restore their
positions in AETE stock. Bona fide shareholders of record would otherwise
suffer substantial dilution subsequent to the 1:50 reverse split and
shareholders who purchased the illegal Reg. D, 504 shares in the market
would have possibly lost their entire investment due to the activities
described above. All bona fide shareholders of record must be shareholders
prior to the record date, that being Friday, August 1, 2008, and must
provide AETE and Control Shareholder with documentation that substantiates
the ownership of recorded shareholdings. The Control Shareholder is under
no obligation, whatsoever, to honor any bona fide shareholder's request to
receive the gift of shares, under any circumstance. Shortly after the
Record date a letter of transmittal will be mailed to all shareholders of
AETE, which will set forth the procedure involved with receiving each bona
fide shareholder's new shares, gifted shares and/or warrants. All bona
fide shareholders (if qualified) owning less than 500 shares will receive,
in addition to the new shares and gifted shares, 10 warrants to purchase,
in the aggregate, 2,000 new shares. Each warrant will be exercisable into
200 shares of the new common stock of Alternative Energy Technology, Inc.
at an exercise price of $5.00 per share. Although no guarantees can be
made, it is the intent of the AETE to file a registration statement with
the Securities and Exchange Commission covering the common stock
underlying the warrants. Such registration statement will serve to bring
AETE into compliance with the Commission's required filings, in order to
effectuate subsequent trading of the AETE's common stock on the Bulletin
Board or higher exchange. All fractional shares held by Stockholders who
own ten shares or more of the new common stock will be rounded up to the
nearest full share.
The Alternative Fuels business model of AETE is structured around the
development, construction and deployment of complete Fleet Mobile
Vertically Integrated Biorefining Units to meet the transportation fuel
needs of the country on a regional basis, placing the process equipment in
close proximity to cellulosic biomass resources. The integrated
proprietary technologies in these units allow AETE, through its
anticipated subsidiaries, to emulate the process and product streams on a
basis similar to that of traditional petroleum refining and/or chemical
units. The New Management and staff of AETE are renewing its commitment
to the enterprise model based on the following.
First, is the ratification of the Meridian Biorefining Technology License
for cellulosic biomass processing which includes the simultaneous
reduction of biomass to micro and nano particle scale range with the
simultaneous separation of lignin through a Catalyzed Esterification
process and further processing of the lignin into high value products
including gasoline and gasoline additives. Second, its commitment to
sustainable vertically integrated biorefining technology delivering
multiple product streams on an expanded basis.
All of the actions described in this press release were taken by AETE's
New Management and the Control Shareholder in order to bring greater
value to the company and all of its bona fide stockholders. New
Management, Consultant and the Control Shareholder wishes to thank all
bona fide shareholders for their support in the past and their continued
support now and into the future.
About Alternative Energy Technology Center, Inc.
The Alternative Energy Technology Center, Inc. (PINKSHEETS: AETE), based
in The Woodlands, Texas, is a technology company focused on biofuels and
alternative energy technologies. It is developing the first true
biorefinery in the U.S. It will focus on technologies using renewable
energy inputs from non-food energy sources and on technologies that can be
scaled up to efficiently address the post-petroleum energy needs of the
United States and abroad. AETE's integrated technologies provide the
ability to convert cheap, abundant cellulosic plant material into a
variety of fuel products that will allow AETE, initially, to efficiently
address a part of America's energy needs. America's energy future must be
built on renewable fuels that can be produced at a lower cost and AETE's
vertically integrated biorefining technology delivers the answer to this
pressing need.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: This news release contains forward-looking information within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, including
statements that include the words "believes," "expects," "anticipate" or
similar expressions. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the company to differ materially
from those expressed or implied by such forward-looking statements. In
addition, description of anyone's past success, either financial or
strategic, is no guarantee of future success. This news release speaks as
of the date first set forth above and the company assumes no
responsibility to update the information included herein for events
occurring after the date hereof.
Contact:
Robert T. Kelly
Consultant
9390 Forest Lane
Conroe, TX 77385
Phone: 214-500-7834
Email: Email Contact
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