8:00 AM ET 5/21/12 | Marketwire
Ashland, KY. May 20th, 2012 – TX Holdings, Inc. (OTCBB: TXHG), an oil and gas operator and mining equipment supply company today announced that on May 18, 2012 TX Holdings’ Board of Directors approved a settlement agreement regarding the on-going litigation between TX Holdings, Inc. (the Company) and former CEO Mark Neuhaus.
The agreement stipulates that Mark Neuhaus will cancel and return to the Company Treasury 6,708,813 shares of the Company’s common stock and agrees by virtue of this agreement to relinquish and release any and all claims he has or may have against the Company including a convertible promissory note for the amount of $1,199,885.55. As part of the settlement, The Company will pay Mark Neuhaus the sum of $100,000 and will release all claims against several other defendants named in the litigation.
In a previous announcement during the month of December, 2011, TX Holdings entered into a new business venture as a retailer and wholesaler of mining supplies. Revenues from the new venture for the six months ended March 31, 2012 and 2011 were $1,028,516. Revenues for the three months ended March 31, 2012 were $916,579 compared to the same period 2011 of $9,086 respectively. There was limited oil production during the six months ended March 31, 2012 primarily due to well work-over.
The Company has leased 4 acres located in Ashland, Kentucky with a 5000 square foot building to house the materials and equipment for the mining operations.
For more detailed information please visit the Company’s Web page at: www.txholdings.com
TX Holdings objective and focus is to continue to expand its mining equipment supply operations while exploring opportunities for its oil and gas fields.
The Company owns a 100% working interest in the Parks lease with significant recoverable reserves. The Lease includes 320-acres and currently has 22 shallow wells. TX Holdings to date has reactivated 12 wells, 10 producers and 2 injectors. The current production averages 60-90 barrels a month. We are in the middle of a work-over and reactivation program to increase production.
Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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