LOS ANGELES, Sept. 30 /CNW/ - Fountain Healthy Aging Inc. announced on September 30, 2009 that it is commencing legal proceedings against Dunn Capital Partners, its principal, Michael Bailey, its legal counsel, Gowling Lafleur Henderson (Gowlings) and others for a recovery of damages to the Company and its shareholders.
The claim arises as a result of the default by Dunn Capital Partners in making payments due to the Company under the terms of the agreement entered into between the Company, Oak Resources Limited and Dunn Capital Partners dated 29 July 2009 (the "Agreement"); the breach by Gowlings of the terms of an agreement under which it would hold stock certificates in the Company in escrow pending payment by Dunn Capital Partners and; the diminution of the value of the Company's stock as a direct result of the trading activities of Dunn Capital Partners using stock which it had acquired without any payment being made in respect of such stock.
The Company will be requesting a damage award of US$9.6 Million in respect of amounts due to the Company from Dunn Capital Partners under the Agreement and US$201 million for the loss in value of the Company's stock and its business as a result of the activities of Dunn Capital Partners and Gowlings. If its claims are successful, it is the Company's intention to declare a special dividend to shareholders and institute a strong stock buy back program on the open market.
Furthermore, if the claims are successful, it is the intention of the Company that a minimum of 50% of the amount recovered will be reinvested into the Company to fully finance the Company's business activities, with the intention of restoring full value to the Company, its shareholders and its stock price.
Fountain CEO, Paul Hunston, commented "we have worked very hard to try to bring about an amicable resolution of this dispute, but throughout we have repeatedly been faced with misrepresentations made by Michael Bailey concerning payment and his trading activities, which misrepresentations have been exacerbated by the activities of Dunn Capital Partner's attorneys Gowlings, and the partner acting as escrow agent, Michael Boehm. In particular, the damages suffered have been exacerbated by the release by Gowlings to Dunn Capital Partners of stock certificates in the Company in direct contravention of an agreement under which Gowlings had accepted such certificates as escrow agents pending receipt of payments already due to the Company from Dunn Capital Partners."
Mr Hunston continued: We have been advised by Dunn Capital Partners that all of the stock received by them, and for which no payments were made, was immediately sold in the market in clear breach of the Agreement and to the detriment of the Company's stock price. We are in the process of retaining legal counsel, and will be filing claims against all parties for losses suffered by the Company, as well as exemplary and punitive damages arising from the wilful conduct of Michael Bailey and Michael Boehm in this matter. In all of this, I have been and will continue to be mindful of our loyal shareholders and am determined to try and minimize or eliminate losses suffered as a result of the actions of the defendants."
Finally, Mr Hunston stated: "Obviously, this lawsuit is a distraction for management, which I would have preferred to avoid. However, we have a strong management team and I will not allow this distraction to deflect us from our business goals, which we remain on course to achieve and about which further announcements will be made in the coming weeks. However, I feel that it is in the clear best interests of the Company and all of its shareholders to pursue this legal action and we will pursue it until justice has been done".
About Fountain Healthy Aging
Fountain Healthy Aging is a company specifically focussed in the anti aging industry, which is one of the quickest growing industry sectors worldwide. We have a range of products targeted at the anti aging market, including our revolutionary flagship product Vitalife, which we believe is ready to make a massive impact in the anti-aging industry. We recognize the importance of the anti-aging sector, an emerging dynamic within the overall health and wellness revolution. We believe that we are uniquely positioned to capitalize on this rapidly growing trend first with our unique flagship product, rapidly followed into the market by our other products which have been specifically developed for this market. Fountain Healthy Aging's main focus is on the specialty, premium product category, which is a growing segment of the market that provides gross margins significantly higher that the lower-priced, mainstream health products market.
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Safe Harbour Disclaimer: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products or actions in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.
SOURCE FOUNTAIN HEALTHY AGING INC
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