PROVIDES UPDATE ON NEW YORK LITIGATION
SCOTTSDALE, AZ and CALGARY, March 30, 2015 /CNW/ - 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
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SOURCE RDX Technologies Corporation
For further information: David Waldman at Crescendo Communications, (212) 671-1021, [email protected]