Disaster !!!! 2M Claim Nexia Health Provides Update on Arbitration Matter
Canada NewsWire
MARKHAM, ON, Aug. 13, 2018
/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.