PROVIDES UPDATE ON NEW YORK
LITIGATION
SCOTTSDALE, AZ and CALGARY, March 30,
2015 /PRNewswire/ - RDX Technologies Corporation
("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE:RL7), a
water treatment and energy technology company, today announced a
trading halt due to a deficit of a Director and an update on
New York litigation.
Today RDX common stock will have trading halted due to the fact
that the RDX Board of Directors consists of two directors, while
three directors are required under the rules of the TSX Venture
Exchange.
In addition, last year, RDX was involved in a legal action with
GEM. That lawsuit was discontinued, and other parts were
dismissed with prejudice, in New
York, after a settlement agreement was reached with GEM.
Based on its contractual obligations and right, RDX filed a $
75MM dollar claim in the Court of the Queen's Bench in Alberta, against the entities and individuals
involved in selling the CWT refinery to RDX, in 2013. RDX has also
filed claims, which include people and entities that were not
involved in the New York action
"the Sellers" or "Defendants". The Defendants in the Alberta action are represented by an attorney
and law firm that previously represented RDX and its Directors, in
the discontinued New York action
brought by GEM. The Defendants in the Alberta action, nearly a month after RDX filed
its lawsuit in Alberta, filed a
third party claim against RDX in an attempt to "forum shop" and
deny RDX the legally negotiated and contractual right that all
disputes relating to the CWT refinery would be adjudicated in
Alberta. RDX is taking steps to
enforce its rights in regards to the Alberta action against the Defendants that
sold RDX the CWT refinery.
In addition, the Defendants in the Alberta action are still being sued in the
New York action by GEM Holdco.
Last week, a judge in the New
York action granted an attachment order, which would require
RDX to set aside just over US$3MM for the benefit of the Alberta
Defendants should the Defendants prevail in their third party
claims in New York. On
March 20th, RDX attorneys
were able to stay the New York
judge's order due to the fact that the judge failed to set a bond
on the attachment order. The bond is intended to cover RDX and its
Directors' losses and damages if in fact the attachment order is
found to have been wrongfully set against RDX. RDX, through its
attorneys, filed paperwork laying out potential losses of just over
US$ 11MM caused by Defendants in connection with the attachment
order. The New York judge has set
a bond in the amount of only US$10,000. The small amount of this bond subjects
RDX and its shareholders to severe financial ramifications if
damages are found against the Defendants and there is insufficient
bond to cover the damages. None of the merits of either case in
New York or Alberta has been heard and RDX has not been
granted or given any discovery in either case by the Defendants in
the Alberta action. RDX is working
with its legal counsel in both Canada and the
United States to vigorously defend its legal rights and the
legal rights of its Directors to due process.
The Company expects to update in additional announcements over
the next several weeks.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
investorinquiry@rdxh2o.com
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release. This news release may contain
forward-looking statements. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Such information is
subject to known and unknown risks, uncertainties and other factors
that could influence actual results or events and cause actual
results or events to differ materially from those stated,
anticipated or implied in the forward- looking information. Readers
are cautioned not to place undue reliance on forward-looking
information, as no assurances can be given as to future results,
levels of activity or achievements."
SOURCE RDX Technologies Corporation