Lawsuit HTC ANNOUNCES LITIGATION WITH BROWNSTONE ADVISORS INC., BROWNSTONE CAPITAL CORP. AND OTHERS
Regina, Saskatchewan — HTC Purenergy Inc. (“HTC” or the “Company”) (TSXV: HTC) (OTCQB: HTPRF) (UII:FRA) announces today that it has been advised that an action, which HTC considers to be entirely without merit (the “Brownstone Claim”), will be continued against HTC and its subsidiary, after having earlier been withdrawn. HTC expect to bring a motion to strike parts of the claim forthwith, while other defendants are expected to make a motion to dismiss the claim against them entirely. HTC and its subsidiary will vigorously defend any parts of the claim that survive the motion to dismiss and are investigating the merits of launching counterclaims and third-party claims against Brownstone Capital Corp. and Brownstone Advisors Inc. (collectively “Brownstone”), Brownstone’s shareholders and other third-parties for any losses and damages suffered due to wrongful conduct.
The Brownstone Claim is purportedly based on engagement letters HTC entered into with Brownstone Advisors Inc. and others (collectively “Advisors”), pursuant to which HTC would be obligated to pay consideration to the Advisors if they facilitated introductions to named third-party cannabis or hemp entities, which completed a transaction with HTC (“Transaction”). Although no Transactions were completed, Brownstone has advanced claims against HTC and others alleging entitlement to compensation. The Brownstone Claim also makes claims regarding a subscription, which HTC again believes is without merit. The Brownstone Claim seeks from all the defendants an aggregate amount of eighty-five million dollars in damages. HTC will determine the extent of the damages it will be seeking upon the completion of its investigations and merited claims.
Jeff Allison, President comments: “The allegations presented and the extend of this claim have shocked management and the board of directors of HTC. We have resolved at a management and board level, to not allow meritless claims to hold our Company and its business venture captive, moving forward”.
For more information contact: Jeff Allison
(306) 352-6132 jallison@htcpurification.com