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by Mike Caswell

Bruce McDonald's Noramco Capital Corp., responding to a counterclaim it faces from Destiny Media Technologies Inc., denies carrying out an 11-year short-selling campaign against the company. Noramco also denies that it offered to provide a $35.6-million financing to Destiny in an effort to obtain confidential documents.

The denials come one month after Destiny blamed Noramco for an 11-year campaign to aggressively manipulate its stock downward. It claimed that Mr. McDonald obtained confidential documents in 2000 after offering to provide financing, and then took a naked short position in the company. In the ensuing 11 years, he continued to exert downward pressure on the stock, preventing the company from raising money and developing its business, Destiny said.

In response, Mr. McDonald and Noramco contend that there was no short-selling campaign or that they made any money in such a campaign. They also say they had no role in the proposed financing that Destiny Media complains of, arguing that any such offer came from a man named Paul Louie, who was not acting on behalf of Noramco.

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