Notice of proposed settlement of the CV Technologies Inc. (Afexa Life
Sciences Inc.) class action

Read this notice carefully as it may affect your rights.

TORONTO, May 14 /CNW/ -

PURPOSE OF THIS NOTICE

This notice is to all persons, other than certain persons associated with the Defendants, who acquired securities of CV Technologies Inc. ("CV"), now known as Afexa Life Sciences Inc., during the period from December 11, 2006 to March 23, 2007 ("Shares"), on the Toronto Stock Exchange ("TSX") and who held some or all of those Shares at the close of trading on the TSX on March 26, 2007 ("Class Members").

In 2007, the plaintiffs commenced class actions against CV, Grant Thornton LLP and certain officers and directors of CV (the "Defendants") in the Ontario Superior Court of Justice (the "Ontario Court") and in the Court of Queens Bench of Alberta, Judicial District of Calgary. The plaintiffs allege that the Defendants misrepresented CV's financial results to the Class Members.

The parties in the class action have reached a proposed settlement, subject to obtaining necessary approval of the Ontario Court. The Defendants will pay the sum of $7.1 million ("Settlement Amount"), in full and final settlement of all claims, including class counsel fees, disbursements, taxes and administration costs in return for releases and a dismissal of the class actions. The parties to the action commenced in Alberta will request that the action be dismissed. If the Alberta action is dismissed, the class members in the Alberta action will be included in the Ontario action and will be eligible to participate in the settlement. The Defendants do not admit any wrongdoing or liability on their part. The settlement is a compromise of disputed claims.

SUMMARY OF THE SETTLEMENT TERMS

The Defendants will pay the Settlement Amount in full and final settlement of all claims, including class counsel fees and administration costs.

The net settlement monies will be distributed in accordance with the court-approved and supervised Plan of Allocation which, in general terms, provides that:

    
    (a)  in order to be eligible to share in the distribution of the
         settlement monies, each Class Member must submit a Claim Form and
         trading information to the Administrator on or before the deadline
         for submission of claims as established by the Ontario Court;
    (b)  the Administrator will determine each Class Member's eligibility and
         calculate the amount of each eligible Class Member's damages
         pursuant to the Plan of Allocation to be approved by the Ontario
         Court ("Nominal Entitlement");
    (c)  each Class Member will be paid a share of the net settlement monies
         calculated as the ratio of his/her/its calculated Nominal
         Entitlement to the total Nominal Entitlements of all eligible Class
         Members multiplied by the amount of the net settlement fund; and
    (d)  in addition, depending upon the amount of all valid claims, each
         eligible Class Member may receive interest of up to a maximum of 4%.
    

If any settlement monies remain after payment of administration costs, class counsel fees and the distribution to the Class Members, the Ontario Court may order the remaining funds be distributed to not-for-profit organizations for the benefit of the Class Members.

Further information on the settlement, including the Settlement Agreement and Plan of Allocation, may be found at www.coldfxclassaction.com.

ADMINISTRATION COSTS AND CLASS COUNSEL FEES

In total, the amount of class counsel fees, disbursements, applicable taxes and administration costs, will not exceed 25% of the Settlement Amount, will be fixed by the Ontario Court and paid from the Settlement Amount at such time (or times) as the Ontario Court directs.

THE APPROVAL HEARING

The Ontario Court will be asked to certify the class action as class proceeding, appoint the representative plaintiffs and approve the proposed settlement as recommended by the plaintiffs and class counsel (the "Approval Hearing"). The Approval Hearing will be held on June 28, 2010 at 10:00 a.m. E.T., at Osgoode Hall, 130 Queen Street West, Toronto, Ontario.

Class Members who do not oppose the proposed settlement do not need to appear at the Approval Hearing or take any other action at this time to indicate their intention to participate in the proposed settlement.

If the Ontario Court approves the proposed settlement, all Class Members will be bound by the terms of the settlement, unless they opt out. If the proposed settlement is approved, there will be a further notice to Class Members which will provide instructions on how to make a claim to receive settlement compensation or how to opt out of the class action if they do not wish to share in or be bound by the settlement.

Class Members who seek the advice or guidance of their personal lawyers do so at their own expense.

OBJECTIONS TO THE PROPOSED SETTLEMENT

Any objections to the proposed settlement must be submitted by no later than June 23, 2010 at 5:00 p.m. E.T. At the Approval Hearing, the Ontario Court will consider Class Members' objections to the proposed settlement. Class Members may, but are not required to, attend at the Approval Hearing. Written objections may be sent:

    
    By mail to:   Sarkis Issac
                  Howie & Partners LLP
                  Chartered Accountants
                  3063 Walker Road
                  Windsor, ON N8W 3R4
                  Attention: CV Technologies Class Action
    By fax to:    519.250.1929
    By email to:  sisaac@howieandpartners.com

    A written objection should include the following information:
    (a)  the objector's name, address, telephone number, fax number and/or
         email address;
    (b)  a brief statement of the nature of and reason for the objection;
    (c)  evidence establishing that the objector purchased Shares during the
         period from December 11, 2006 to and including March 23, 2007;
    (d)  a statement that the objector held some or all of those Shares at
         the close of trading on the TSX on March 26, 2007; and
    (e)  a statement as to whether the objector intends to appear at the
         Approval Hearing in person or by counsel, and, if by counsel, the
         name, address, telephone number, fax number and email address of
         such counsel.

    -------------------------------------------------------------------------

    This notice has been approved by the Ontario Superior Court of Justice.
       Questions about this notice should NOT be directed to the court.
     If there is a conflict between the provisions of this Notice and the
         Settlement Agreement, the terms of the Settlement Agreement
                               shall prevail.
    

SOURCE Sutts, Strosberg LLP Barristers & Solicitors

For further information: For further information: QUESTIONS ABOUT THIS NOTICE, THE PROPOSED SETTLEMENT OR THE CLASS ACTION: Questions for class counsel should be directed by telephone or in writing to one of the following class counsel: Jay Strosberg, Sutts, Strosberg LLP, 600-251 Goyeau Street, Windsor, ON, N9A 6V4, Tel: (888) 460-0824, Fax: (866) 316-5308, Email: coldfx@strosbergco.com; Michael Robb, Siskinds LLP, 680 Waterloo Street, London, ON, N6A 3V8, Tel: (519) 660-7872, Fax: (519) 660-7873, Email: michael.robb@siskinds.com

Organization Profile

Sutts, Strosberg LLP Barristers & Solicitors

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890