MORIN-HEIGHTS, QC,
March 12, 2019 /CNW Telbec/ - Capital Pro-Égaux Inc. (the
"Company") (NEX: CPE.H) announces that its wholly owned subsidiary,
Technique d'usinage Sinlab Inc. ("Sinlab"), has entered into a
Litigation Funding Agreement for the funding of expenses related to
the professional negligence action for damages commenced in 2013 in
Florida against Sinlab's counsel
who represented Sinlab in litigation in Virginia against certain entities who violated
Sinlab's pioneering digital dentistry patent portfolio (the
"Litigation").
Update on Litigation
The Litigation continues and is expected to be on the trial
docket for the fourth quarter, 2019, with limited additional
discovery during the next few months. To date, no defendant has
offered any settlement payment to Sinlab.
Litigation Funding Agreement
The Company and Sinlab explored solutions to finance expenses
relating to the Litigation, including a temporary revocation of the
cease trade order to complete a private placement of common shares
and funding from commercial litigation financing entities.
Ultimately, Sinlab entered into a litigation funding agreement
with certain of its directors and officers upon terms and
conditions consistent with those available from commercial
litigation financing entities. The agreement provides for funding
of litigation expenses in exchange for the payment of a portion of
the proceeds from the resolution of the Litigation, including a
settlement or a judgement, ranging between 20% and 40% depending on
the amount of funding expended and timing of the resolution of the
Litigation. In order not to hurt Sinlab's position in the
Litigation, the amount of the funding is not disclosed. However,
this amount is in the range of half a million dollars. Although the
transaction constitutes a related party transaction of the Company
within the meaning of applicable securities legislation, the
Company is relying on certain exemptions from the formal valuation
and minority approval requirements contained in such
legislation.
"The principals of the Company are committed to seeing this
Litigation through and are open to considering further financing if
necessary" said Mr. Pierre Désormeau, president of the
Company.
Caution regarding forward-looking statements
This news release contains certain forward-looking statements
regarding the Company's expectation of future events, including
potential claims and developments regarding legal proceedings. Such
expectations are based on certain assumptions based on currently
available information. If these assumptions prove incorrect, actual
results may differ materially from those contemplated by the
forward-looking statements contained in this press release. Factors
that could lead actual results to differ include, amongst others,
factors that may impact claims and legal proceedings, such as
interpretation of factual matters, time and money involved in
undertaking legal proceedings, uncertainty as to the final result
and other risks. The Company disclaims any intention or obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
other than as required by securities laws.
About Pro-Égaux Inc.
Pro-Égaux through its wholly owned subsidiary, Technique
d'usinage Sinlab Inc., is a company based in Lachenaie, Quebec, specializing mainly in the
conception and design of titanium products to be used in the dental
prosthesis restoration industry.
Neither NEX, the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of NEX
and the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Capital Pro-Égaux Inc.