) (``Border') reports that the court has
reserved its decision in the application for an injunction against Border, IBC
Investments Limited (``IBC') and their related parties by Louis Dion, Leo
Dion and others (``Dion Group'). Management for Border will report on the
outcome of the decision of the court regarding the injunction application
against IBC and Border, which is scheduled November 2, 1999.
Arbitration proceedings have been initiated by the Dion Group in respect
of various issues including the decision of IBC and Border Nevada to eliminate
the Management Committee of the joint venture. Counsel to the Dion Group
advised the court that agreement had been reached on the arbitrator to be
appointed, and Border, IBC and their related parties confirm that agreement.
Border's subsidiary (``Border Nevada') and IBC intend to raise at the
arbitration claims against Louis Dion for alleged breaches of his duty to the
parties to the joint venture, IBC and Border Nevada, and claims against Louis
Dion and MCG Millennium Capital Group Ltd. (``MCG') for alleged breach of
their duties to IBC under their agency agreement.
Border Nevada and IBC also intend to make claims against Dion
Entertainment Corp. (TSE:DIO) for alleged misappropriation of corporate
opportunities of the joint venture that have surfaced in recent announcements
by Dion Entertainment Corp. These opportunities are alleged to be game show
business opportunities developed by MCG and Louis Dion who are alleged to have
also breached a July 31, 1998 agreement by failing to bring such gaming
opportunities to the joint venture. Additionally, Border Nevada and IBC
allege breaches by Dion Entertainment Corp. of duties of confidentiality in
respect of certain confidential information provided pursuant to the July 31,
1998 agreement.
Moreover, Border Nevada and IBC intend to make claims against Louis Dion,
Leo Dion and MCG for alleged breaches of the July 31, 1998 agreement and
agency agreement, which allegedly precipitated the claim by BingoNet, Inc.
(``BingoNet') for reversion of the patents under sections 7 (b) and 9 (c) of
the 1996 assignment agreement between BingoNet and IBC. Section 7 (b) of the
1996 assignment agreement prohibits IBC from transferring title to the patent
rights without the prior consent of BingoNet. Section 9 (c) prohibits IBC from
``clouding title' to the patents should a reversion event occur. |
