Nexia Health Provides Update on its Court Appeal Efforts
/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.
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Nexia Health Contact: Nexia Health Technologies Inc., Nick Clemenzi, Chief Financial Officer, [email protected], 905-415-3063
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