NGCO - Nova Growth Corp. - Announces Litigation in Respect of Gaming Ventures Group.
Trading Symbol: "NGCO" CDN
TORONTO, Sept. 15 /CNW/ - Nova Growth Corp. (the "Company") announces
that on September 12, 2000, the Company commenced an action (the "Action")
before the Ontario Superior Court of Justice against Shiplake Casino Corp.
("Shiplake"), an Ontario corporation and Park Gaming, L.P. ("Park"), a
Delaware limited partnership.
In the Action, the Company is seeking, among other things, a declaration
that it carried on business as a partner or, alternatively, as a
joint-venturer with Shiplake and Park in respect of the Gaming Venture Group
("GVG") in response to the February 18, 1997 request by the Ontario
government for proposals to develop and operate charity gaming clubs in
Ontario (the "GVG Bid"). The Company is also seeking an accounting of all
right, title and interest, as well as proceeds and benefits held or
obtained, by Shiplake or
Park, in any monies paid in respect of the GVG Bid. The Company also claims
damages in the amount of $10,000,000.00.
In the Action, the Company alleges that the Company, Park and Shiplake
entered into an agreement to fund the GVG Bid on an equal basis and to
submit the GVG Bid through GVG. The Company claims that it was entitled,
among other things, to an interest in GVG consisting of: (i) a royalty
interest of five percent (5%) of GVG's profits; and (ii) an option to
acquire a one-third equity interest in GVG in the event that the GVG Bid was
successful (the "Option").
In September, 1997, the Alcohol and Gaming Commission of Ontario
announced the selection of GVG to develop five permanent charitable gaming
clubs and one seasonal charitable gaming club. The Commission identified GVG
as a partnership comprised of the Company, Shiplake and Park. In June, 1998,
the Ontario government announced the cancellation of the Ontario charitable
gaming clubs project, including the successful GVG Bid (the "Cancellation").
The Company alleges that, following the selection of GVG as a successful
proponent, the Company's attempts to exercise the Option were not recognized
by GVG and that, subsequent to the Cancellation, GVG, acting with the
knowledge and at the direction of Shiplake and Park, was paid an unknown
amount of compensation (the "Compensation") for the Cancellation. The
Company further alleges that neither Shiplake nor Park notified the Company
of the Compensation and that they failed to provide the Company with an
accounting of
the Compensation or pay any portion of the Compensation to the Company.
The Company has 9,829,383 common shares outstanding (11,047,243 on a
fully diluted basis).
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For further information: Mr. Brian Hamm, President and Director at
(416) 362-3966
NOVA GROWTH CORP. has 12 releases in this database. |
