News Release

Vancouver - The British Columbia Securities Commission has agreed to allow a Richmond-based company’s securities to resume trading after it provides updated disclosure to its shareholders.

The executive director cease-traded the securities of MDMI Technologies Inc. (MDMI), a medical device company with a head office in Richmond, B.C., on June 15, 2005 for failing to file distribution reports.

Prior to the cease-trade order, MDMI distributed approximately $2.3 million of its securities to 262 B.C. investors between February 2002 and March 2005. Approximately 259 investors did not qualify for the “friends and family” exemption the company used to make the distribution, which is a violation of the Securities Act.

The executive director issued a notice of hearing in August 2007 that set out allegations against MDMI and its former president and CEO, James Richard Elliot, with respect to the distribution of its securities.

Under the settlement agreement, MDMI will provide updated disclosure to its shareholders in the proper form, and the company’s directors are required to complete a course concerning their obligations and duties within one year.

The allegations against Elliot have not been proven. A hearing concerning this matter will begin on June 6, 2008 at 10 a.m.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement on our website www.bcsc.bc.ca by typing in the search box, MDMI Technologies Inc. or 2008 BCSECCOM 249 . If you have questions, contact Ken Gracey, Media Relations, 604-899-6577.
 

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org .