01 Communique Announces TSX Listing Review and Provides an Operational Update
TORONTO, March 19, 2014 /CNW/ - 01 Communique (TSX:ONE) announced that the Toronto Stock Exchange ("TSX") has informed the Company that the TSX is reviewing the Common Shares of the Company with respect to meeting the continued listing requirements. Specifically the TSX is reviewing the Company, under Section 710 (b) of the TSX Company Manual, with respect to having total assets of $3.0 million or annual revenue of $3.0 million in the most recent year. At the end of its last reporting period as at January 31, 2014 the Company had $2,893,000 of assets. The Company has been granted 120 days in which to regain compliance with these requirements, pursuant to the Remedial Review Process.
"We will be working to remedy the situation with respect to our listing on the TSX within the 120 days allowed," said Andrew Cheung, President and CEO of 01 Communique. "Our most valuable asset consisting of our intellectual property and patents is not reflected on our Balance Sheet as accounting standards call for amounts spent on these assets to be expensed. To date we have invested in excess of $26 million dollars in our intellectual property which has been expensed. These are the assets that we believe will enable us to realize the true value of our Company. At the present time we are engaged in two lawsuits with respect to defending our intellectual property rights, one against Citrix Systems Inc. and the other against LogMeIn Inc."
Citrix Systems Inc. ("Citrix") Litigation -
On February 2, 2006, a lawsuit was filed by the Company in the United States District Court, Northern District of Ohio, Eastern Division, against Citrix alleging infringement of our patent number 6928479 (the "'479 Patent"). As part of the litigation Citrix requested an inter partes reexamination of the '479 Patent by United States Patent and Trademark Office ("USPTO"), and also requested a stay in the Court proceedings. The stay was granted by the Judge in the case on March 12, 2008.
On March 16, 2007, prior to the stay being implemented, the court issued a patent claim construction ruling adopting the Company's claim construction for 19 of the 20 disputed claim terms (commonly referred to as a "Markman Ruling").
On July 6, 2010 a Right of Appeal Notice was issued by the USPTO confirming the patentability of the '479 Patent. Citrix appealed that decision to the USPTO's Patent Trial and Appeals Board ("PTAB").
On October 29, 2013 the PTAB rendered their decision affirming the validity of the '479 Patent. The appeal process is now complete at the USPTO. Citrix has appealed that decision to the United States Court of Appeal for the Federal Circuit and that appeal is now in process. We are confident that we will prevail in this appeal as well.
On February 28, 2014 a Court Order was issued granting 01 Communique's motion to lift the stay and proceed to trial. A pretrial conference is scheduled for October 17, 2014 at which time a trial date will be set. Between now and the pretrial conference the Company and its legal team will be working in earnest to complete everything that is required in preparation for trial.
LogMeIn Inc. ("LogMeIn") Appeal -
On September 8, 2010, the Company filed a lawsuit in the Eastern District of Virginia, against LogMeIn alleging infringement of the '479 Patent. The case against LogMeIn proceeded to trial and on March 26, 2013 the Jury in the trial rendered its verdict concluding that 01 Communique's '479 Patent is valid but that LogMeIn does not infringe the patent.
The Company disagrees with the jury's finding of non-infringement and on June 26, 2013 a notice of appeal was filed with the United States Court of Appeal for the Federal Circuit (Appeal Nos. 2013-1479). LogMeIn has filed a cross appeal, (Case No. 2013-1525) in respect of the Court Order concluding that the '479 Patent was valid and enforceable. Their cross appeal has been consolidated with the Company's appeal. To date all briefs that are due have been filed by both parties. The Company remains confident in the merits of its appeal and expects the Hearing to take place in the next several months after which a decision will be rendered.
There can be no assurance that the Company will be able to achieve compliance with the TSX's listing requirements within the required timeframe. If the Company cannot satisfy the TSX that continued listing on the TSX is warranted, it plans to explore alternative listing possibilities.
About 01 Communique
Established in 1992, 01 Communique Laboratory Inc. (TSX: ONE) offers a suite of remote access services designed for small-medium sized business, mobile professionals and IT service providers. 01's software as a service offerings are deployed on-demand and include functionality enabling on-line meetings, remote computing and IT support. 01's suite of products includes its remote access offering I'm InTouch (www.imintouch.com), its online meeting offering (www.imintouchmeeting.com) and its remote support offering I'm OnCall (www.imoncall.com) products are protected in the U.S.A. by its patents #6,928,479 / #6,938,076 / #8,234,701 and in Canada by its patents #2,309,398 / #2,524,039 and Japan by its patent #4,875,094. For more information, visit www.01com.com or call (905) 795-888 or (800) 668-2185 (North America only).
Cautionary Note Regarding Forward-looking Statements.
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the company's Annual Information Form filed on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update or revise them to reflect new events or circumstances.
SOURCE 01 Communique Laboratory Inc.For further information:
Chief Financial Officer
(905) 795-2888 x204