NHC Communications Inc. Reaches Settlement of ''Wireman'' Litigation
MONTREAL, Sept. 15 /CNW/ - NHC Communications Inc. (''NHC'') announced
today that it has reached a final settlement, subject to documentation,
concerning an action in the Ontario Court (General Division) that was
commenced in February of 1999 and in which it was named as sole defendant. The
plaintiff in the action was Cumberland Management Services Limited
(''Cumberland'') on its own behalf and on behalf of 70 co-owners of the
''Wireman'' computer software which was previously purchased from NHC. The
action, in which contractual damages of $90 million were claimed, was settled
without an admission of liability by NHC for a cash payment of $300,000 and an
issuance of 450,000 common shares (the ''Shares'') of NHC to Cumberland, in
trust for the 70 co-owners. The Shares will be subject to a twelve-month hold
period pursuant to Ontario securities laws. The settlement agreement, which is
final and conclusive, forever releases NHC from all claims past, present and
future that the co-owners had or may have related to the ''Wireman'' computer
software.
The management of NHC is pleased to put this litigation behind it, and
believes that the settlement will have a positive effect on its future
operations. Moreover, management also emphasized the fact that the cash
payment of $300,000 and all legal costs related to this litigation have been
accounted for in NHC's consolidated financial statements in fiscal 1997 and
that, consequently, these amounts will not adversely affect either the
consolidated financial results nor the shareholder's equity of the following
years. The Shares will be issued for an aggregate consideration of $108,000,
which amount will be recorded as a loss on discontinued activities during the
fiscal year ending July 30, 1999.
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For further information: Sylvain Abitbol, President, C.E.O., NHC
Communications Inc., 1-800-361-1965, Fax: (514) 735-8057, Internet:
pr@nhc.com, Web Site: www.nhc.com or Sylvain Brossard, CA, V.P. Finance and
Corporate Controller, NHC Communications Inc., 1-800-361-1965, Fax:
(514) 735-8057, Internet: s.brossard@nhc.com |
