/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES/
MARKHAM, ON, Aug. 13, 2018 /CNW/ - Nexia Health Technologies Inc. (TSXV: NGH.H) (the "Company") is providing an update of the status of its previously disclosed legal dispute with a software vendor (the "Claimant").
The Company previously disclosed that, on January 26, 2018, the arbitrator issued a final partial award in the Claimant's favour whereby it upheld certain claims for breach of contract and indicated it would determine the quantum of damages following further submissions by the parties. These additional submissions took place in April and May 2018 and on August 10, 2018, the Company was advised that the arbitrator had awarded damages in favour of the Claimant of approximately $2,000,000, including approximately $410,000 in respect of the Claimant's claim for interest due and approximately $140,000 for the Claimant's share of arbitration costs.
The Company and its legal counsel strongly disagree with the arbitrator's decision relating to breach of contract and the award of damages and are exploring the Company's legal options to attempt to set aside this decision and damages award.
The Company cannot provide any assurance on the likelihood of success in being able to challenge this decision or set aside the damages award. If the Company is unsuccessful in doing so, its financial condition will be adversely affected as the quantum of damages awarded to the Claimant exceed its existing cash reserves.
The Company will provide updates on this matter when it becomes aware of new material information.
This release contains forward-looking statements. Forward-looking statements, without limitation, may contain the words believes, expects, anticipates, estimates, intends, plans, or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and actual results could differ materially from those anticipated. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in the Company's filings with Canadian securities regulators (www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nexia Health Technologies Inc.
For further information: Nexia Health Contact: Nexia Health Technologies Inc., Nick Clemenzi, Chief Financial Officer, [email protected], 905-415-3063