Great Lakes Graphite Inc GLKIF

Great Lakes Graphite Reaches Lawsuit Settlement

[ElliotFT]

June 13, 2018, Toronto:  Ontario Graphite Ltd. (“OGL”) and Great Lakes Graphite Inc., doing business as NovoCarbon Corporation, (“GLK”, “NovoCarbon” or the “Company” TSX-V:GLK, OTCQB:GLKIF, FWB:8GL) today announce that they have reached an agreement to settle the litigation between them and to amicably resolve all pending disputes (refer to press release dated February 22, 2016), before the Ontario Superior Court of Justice, in Toronto.  This includes OGL’s lawsuit against GLK, Michael Coscia and Jerry Janik, in addition to Jerry Janik and Michael Coscia’s lawsuit against OGL.

As part of the settlement, GLK has agreed to issue to OGL seven (7) million common shares in the capital of GLK, which shares to subject to a hold period of no greater than four (4) months and one day.  The issuance of shares are subject to approval by the TSX Venture Exchange.  In addition, all legal actions between OGL, GLK, Michael Coscia and Jerry Janik, will be dismissed.  The balance of the terms of the settlement are confidential.

Trading on OTCQB Market

Further to our news release on May 16, 2018, the company is pleased to announce that its common shares have been uplisted for trading on the OTCQB Market in the United States, under the ticker symbol “GLKIF”, effective immediately.

Management Change

The Company announces the mutual termination of Todd Jorn as Chief Operating Officer of the Company, effective immediately.  “The Board of Directors is appreciative of Todd’s efforts on behalf of the Company and wishes him well in his future endeavours”, said Paul Gorman, Chief Executive Officer.

About NovoCarbon Corporation: NovoCarbon is a Clean Technology Minerals Processing Company supplying customers with innovative, high quality value-added carbon products.

There is no significant graphite production in North America now. As pricing and demand continue to rise, NovoCarbon is one of the first new domestic suppliers to a growing regional customer base. We continually work to deliver products of the best quality with outstanding customer service.

The Company is party to an agreement for long-term supply of high quality natural graphite concentrate from Brazil. NovoCarbon is presently working with an established US-based processor for toll micronization services. The Company has partnered with Ashland Advanced Materials for commercial-scale purification operations at Ashland’s 110,000 square foot purification facility located in Niagara, New York.

Through our partner relationships, NovoCarbon began selling micronized synthetic graphite beginning in 2016 and now supplies micronized and high purity micronized natural flake graphite products to a growing customer base.

Further information regarding NovoCarbon can be found on the Company’s website at: www.greatlakesgraphite.com.

NovoCarbon trades as GLKIF on the OTCQB market in the US and as GLK on the TSX Venture Exchange in Canada.  There are currently 125,656,830 shares outstanding.

Note: The current legal name of the corporation is Great Lakes Graphite Inc., which is doing business as NovoCarbon Corporation until final approval by the shareholders and the TSX Venture Exchange.

For more information, please contact:

Paul Gorman
Chief Executive Officer
Email: [e-mail]

Susan Murphy
Manager, Administration
Email: [e-mail]
1-800-754-4510 x101

[OrsonModesto]

Definitely good news that this is behind them, although at this point I don't think they should have even given them this much just in shares. But better to move on. It essentially becomes a wash with the recent expiring warrants I posted about earlier.

[ElliotFT]

I’m not sure I understand the 4 months expiration. Ontario graphite have 4 months to sell their stock after receiving them? Beside that, I think settling before receiving any contracts is the best thing to do. They’ll won’t have claims against future appreciation.

[Floridas2000]

The dilution is unfortunate but I'm hoping that's a typo.  If not the only justification is that big news is coming and the SP will appreciate and they want OGL to get out before 4 months.  Still it doesn't make sense - who knows?

[alphatrades]

Its not an expiry clause, its a mandatory hold period of a minimum of 4 months, which is typical on share based deal to avoid having the counterparty dumping the shares ASAP on the market. The wording is a bit unclear though   "As part of the settlement, GLK has agreed to issue to OGL seven (7) million common shares in the capital of GLK, which shares to subject to a hold period of

[Floridas2000]

You are right it's confirmed they are prohibited from selling for 4 months.  Makes more sense or they would dump first chance they get. Anyways - great news.

[Aidan001]

heres a screen shot ignore the February presentation. It shows that qualification for “customers #4 - battery company” will be done in 9 months (November 2018?). 4 months from now is October 2018  https://ibb.co/jxived

[BueBoy]

What concerns me is the bit that says "as part of the settlement." I am more interested in what the part is we are not being told. Throughout we have been told there were no grounds for the case being brought by OGL, there would be a counter claim, the court would throw the case out, GLK poached the staff within the law and now they agree to pass over 7m shares plus there are the costs

[Floridas2000]

I don't think management is lying but at this point it makes sense to do it.  The lawsuit was on hold indefinitely and even with no merit it looks bad, it will cost money to pursue and it prevents Novocarbon from doing some things they want to do.  These cases are never black and white and judges are human that can make bad judgments, this is safer.  OGL was stubborn, they could

[BueBoy]

No question of them lying, just not giving the full facts. The news release says the terms not disclosed "are confidential." That stinks to me of a detriment to GLK. We know OGL needs funds so there needs to be a good news flow before mid October when OGL will dump 7m shares. As to Todd - just another hopeless appointment. We need someone capable of managing and to guide this company to

[Floridas2000]

Well done. 1 - We have been wanting this settlement on the board for a long time know.  OGL needs money right now or they will be left behind.  GLK needs to remove the stigma of the lawsuit and do right for Mike and Jerry.  This helps both sides. 2 - Hopefully this will no longer drive away investors who are worried about the suit.   3 - Looks like they're expecting big