SCOTTSDALE, AZ, March 11, 2014 /CNW/ - RDX TECHNOLOGIES CORPORATION ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE: RL7) an energy and water treatment technology company, today responded to a series of news or press releases by a company known as "GEM" Ventures and "GEM" principals; Chris Brown, Ed Tobin and Demetri Diakolios.
Dennis M. Danzik, Chief Executive Officer of RDX, states, "Over the last eleven months our Company has been involved in a lawsuit with a firm known in the New York area as "GEM", or "Global Emerging Markets". RDX was exposed to GEM during our acquisition of the refinery in Carthage, Missouri that historically had lost tens of millions of dollars over several years, with various operators at the helm. Neither RDX nor I know much about GEM, the worth of its partners, GEM's claim that it manages a $ 3.4 billion dollar investment fund or its operations. What I do know is that, as we have discussed in our court papers, despite our requests, GEM did not provide the funding that we believed it was contractually required to and that we believed that the Carthage facility needed. "
Danzik added "After half of its lawsuit was dismissed by a New York judge, GEM has amended its complaint for a third time and now sued Ridgeline, Dennis Danzik, Tony Ker and several current and former board members for defamation in connection with a May 1, 2013 press release in which Ridgeline discussed its anticipated counterclaims against GEM. As will be discussed in the upcoming motion to dismiss this claim, Ridgeline had the complete right to discuss its planned response to being sued and its statements are immunized by privilege and are otherwise non-actionable."
GEM has yet again added a new claim, apparently out of piqué as to how events have been proceeding for it in court.
It is also of interest to the Company that GEM declares a "News" event on a court filing that took place almost a month ago.
In dismissing GEM's prior claims, the New York Supreme Court found that GEM's then counsel's "inexcusable lack of candor" with the Court "strongly suggests that GEM breached" the principal agreement upon which it bases its lawsuit against Ridgeline and the other defendants. If this were true, it would mean that GEM could not prevail in the lawsuit and might itself be liable to one or more of the defendants. The Court also noted that the statements by GEM's then counsel in opposing the motion to dismiss "borders on perjury." Notably, GEM has replaced the counsel about whom the Court spoke.
The Court found that half of GEM's claims were dismissible on their face and that discovery was required with respect to the remaining claims, but in so ruling, the Court expressed skepticism as to some of GEM's positions.
As to the latest claim, Dennis Danzik, the CEO of RDX, commented "GEM's new defamation claim, now the fourth version of its complaint, is an act of desperation by desperate litigants seeking vainly to use the courts and the media to punish RDX and its directors and management for engaging in a proper and lawful business transaction, after the Court has already suggested that GEM may have breached its own contractual obligations to its partners by failing to provide the required funding. As we have already discussed in our prior court papers, it was this lack of funding which prompted the deal that we did enter into with CWT to obtain our new Carthage facility. This new claim is completely frivolous and we expect to challenge it vigorously and prevail, as is true with regard to the rest of GEM's vindictive but meritless claims."
Counsel for RDX and its directors and management will be filing a motion to dismiss the defamation claim and some of GEM's remaining claims next week, and will also be appealing to New York's Appellate Division to obtain dismissal of the claims that the trial court has not yet dismissed.
On the strength of the facts, RDX legal counsel, Jeffery Eilender, with the law firm of Schlam Stone and Dolan, LLP., has volunteered to personally answer investor or analyst questions on the lawsuit and timing of court filings and progress.
Danzik added "RDX will continue to forge ahead, delivering shareholder value. It is sad when people that have nothing to do with RDX success, attempt to cast the Company in a bad light. We believe that GEM's lawsuit and its press releases merely reflect its frustration at the proper deal that RDX made with the owners of CWT and with how RDX management has turned the Carthage facility around in such a short time. RDX will let the legal process and our continued successes speak clearly for RDX. The RDX management team is executing and delivering value. The Company deserves and will receive shareholder support."
About RDX Technologies Corporation
RDX Technologies Corporation is an energy and water treatment technology company. The Company is applying proprietary technology to refine liquid fuels from materials mined from waste water generated from industrial and commercial sources. These markets include a wide variety of clients across a broad spectrum of industries. The Company trades on the TSX Venture Exchange under the symbol "RDX", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."
SOURCE: RDX Technologies Corporation
For further information:
David Waldman at Crescendo Communications