/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES/
MARKHAM, ON, Aug. 13, 2018 /CNW/ - Nexia Health Technologies
Inc. (TSXV: NGH.H) (the "Company") is providing an update of the
status of its previously disclosed legal dispute with a software
vendor (the "Claimant").
The Company previously disclosed that, on January 26, 2018, the arbitrator issued a final
partial award in the Claimant's favour whereby it upheld certain
claims for breach of contract and indicated it would determine the
quantum of damages following further submissions by the parties.
These additional submissions took place in April and May 2018 and on August 10,
2018, the Company was advised that the arbitrator had
awarded damages in favour of the Claimant of approximately
$2,000,000, including approximately
$410,000 in respect of the Claimant's
claim for interest due and approximately $140,000 for the Claimant's share of arbitration
costs.
The Company and its legal counsel strongly disagree with the
arbitrator's decision relating to breach of contract and the award
of damages and are exploring the Company's legal options to attempt
to set aside this decision and damages award.
The Company cannot provide any assurance on the likelihood of
success in being able to challenge this decision or set aside the
damages award. If the Company is unsuccessful in doing so, its
financial condition will be adversely affected as the quantum of
damages awarded to the Claimant exceed its existing cash
reserves.
The Company will provide updates on this matter when it becomes
aware of new material information.
Forward-Looking Statements:
This release contains forward-looking statements.
Forward-looking statements, without limitation, may contain the
words believes, expects, anticipates, estimates, intends, plans, or
similar expressions. Forward-looking statements are not guarantees
of future performance. They involve risks, uncertainties and
assumptions and actual results could differ materially from those
anticipated. Forward looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
In the context of any forward-looking information please refer to
risk factors detailed in, as well as other information contained in
the Company's filings with Canadian securities regulators
(www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Nexia Health Technologies Inc.