Attention Business Editors:
Border Capital Corp. announces legal update
VANCOUVER, Oct. 19 /CNW/ - Border Capital Corp.
(ASE:BOP)
Border Capital Corp. (ASE:BOP) (``Border') reports that the court
application for an injunction against Border and its related parties by Louis
Dion, Leo Dion and others is rescheduled from October 15th, 1999 to October
21st, and 22nd, 1999.
The court proceedings commenced by the Dions and others on September
28th, 1999 pre-empted closing of the $US6.5 million acquisition of BingoNet,
Inc. by Border's subsidiary, Border Capital (Nevada) Corp. on September 30th,
1999. The principal of BingoNet, Inc. has asserted a claim against Border
Capital (Nevada) Corp., for specific performance of the March 25th, 1999 Sale
and Purchase of BingoNet, Inc. by payment of the $US5.7 million balance of the
purchase price. As a result Border will continue to pursue every opportunity
to complete the BingoNet acquisition upon receipt of the court decision in the
pending injunction application.
BingoNet also asserts that the injunctive relief sought by the Dions will
cloud title to the patent rights assigned to IBC Investments Limited (``IBC')
under an April 14th, 1996 assignment agreement with BingoNet, Inc.
Consequently, BingoNet Inc. is alleging that the actions taken by the Dions
will cause a reversion of the patent rights under the terms of the assignment
agreement. Management of Border is of the view that should the injunction be
granted, it could impair Border's ability to strongly defend against the
claims being asserted by BingoNet, Inc. In the event that the injunction is
dismissed, Border management believes such claims for patent reversion by
BingoNet are unsubstantiated.
Management for Border and IBC view the injunction application as
frivolous and are seeking to have the matter dismissed. Border has instructed
counsel to vigorously prosecute all available legal recourse against the Dions
and Dion Entertainment Corp. (TSE:DIO).
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein. |
