/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES/
MARKHAM, ON, Oct. 24, 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 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") and that on
August 20, 2018, the Company filed a
Motion to Vacate the Final Arbitration Award in New York civil court (the "Court");
- On May 20, 2019, the Court issued
a Decision and Order denying the Company's petition to vacate the
Final Arbitration Award and granted the Claimant's cross motion to
confirm the Final Arbitration Award plus interest at a rate of 9%
per annum from August 10, 2018 (the
"Order"); and
- On May 31, 2019, the Company
filed a Notice of Appeal with the Supreme Court, Appellate
Division, First Department, of the State
of New York ("Appellate Court") and further filed its appeal
brief with the Appellate Court on July 8,
2019.
On October 24, 2019, the Company
was informed that the Appellate Court affirmed the lower Court's
Order. The Company and its legal counsel believe there are
legal grounds for the Appellate Court to reconsider its
decision.
While the Company will continue to explore all available legal
options with its legal counsel, the Company cannot provide any
assurance on the likelihood of success in being able to challenge
the Appellate Court decision. As a result, unless the Company is
successful in having the Appellate Court reconsider their decision,
the Company will be insolvent and unable to carry on future
operations, as its available liquid assets would be insufficient to
satisfy the damages award reflected in the Order.
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.