/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES/
MARKHAM, ON, May 22, 2019 /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 Partial
Final Award on Liability 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. On August 10,
2018, the arbitrator awarded damages in favour of the
Claimant of approximately $2,000,000,
including approximately $410,000 in
interest due and approximately $140,000 for arbitration costs ("Final
Arbitration Award").
On August 20, 2018, the Company
filed a Motion to Vacate the Final Arbitration Award in
New York civil court (the "Court")
and various Court proceedings were carried out between January 2019 and April
2019.
On May 20, 2019, the Court
issued a Decision and Order denying the
Company's petition to vacate the Final Arbitration Award and
also granted the Claimant's cross motion to confirm the Final
Arbitration Award. The Company has reviewed this matter with
legal counsel and intends to appeal the Court's decision in
New York appellate court, as well
as continue to explore other available options. The Company cannot
provide any assurance on the likelihood of success in being able to
challenge this Court decision. If the appeal is unsuccessful, the
Company will be insolvent and unable to carry on future operations,
as its available liquid assets would be insufficient to pay the
damages award.
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.