Veritec Receives Capital From New Board Member

Veritec Inc., the Chatsworth maker of product marking codes similar to bar codes, said it will receive an undisclosed amount of capital in a financing package arranged by New York attorney W. M. Starosolsky . Starosolsky has also been named to the board of directors.

The company declined to say whether it will receive cash or loans. The capital infusion is to help maintain the struggling company until Starosolsky can arrange long-term financing.

Starosolsky joined Veritec on the condition that three members of the board of directors, Arnold Lord, Melvin Shaw and Elmer McClintock, resign.

Jack Dahl has been named acting chief financial officer and treasurer, replacing Lord, who held these positions. Alex LaChance has been named acting chief operating officer. Previously, Dahl was Veritec’s director of administration and LaChance was the company’s vice president of engineering.

The company has no president or chief executive officer. Veritec said a recent agreement with William V. Botts to allow Botts to act as president and chief executive officer has been withdrawn. Botts was named to the posts earlier this year, but never served due to disagreements with the company. Veritec is seeking someone to fill the post.

In the latest fiscal quarter that ended Dec. 31, Veritec narrowed its loss to $320,000 from $368,000 in the same period last year. The loss came after an 80% increase in quarterly revenue to $118,777.