Benev Capital (BEV-T) faces new lawsuit from Bennett
June 19, 2013 - News Release
The Toronto Stock Exchange has determined that, following the sale of BCI's waste treatment plant in Saint Ambroise, Quebec, it no longer meets the TSX's requirements for continued listing. Accordingly, BCI intends to apply in the near future to the TSX Venture Exchange, and/or its NEX Division, to list its common shares, and plans to voluntarily delist from the TSX. BCI will seek to minimize any time gap between the TSX delisting and obtaining a new listing. There can be no assurance, however, that a new listing will be obtained or, if so, when.
The Company has significant cash resources, amounting to approximately $71 million as at June 17, 2013, and continues to seek to source, structure and complete one or more transactions designed to transform the Company and create meaningful value for shareholders. Such transactions may involve, among other things, one or more of an acquisition, a merger, a strategic investment. A return of capital, special dividend and/or dissolution may also be considered. The sale of the plant was the first step in this direction, and the Company believes it will increase its range of options and provide it with enhanced flexibility on a go forward basis. In the meantime, the Company intends to manage its cash conservatively, reduce its expenses where appropriate and remain prudent and patient.
If in the meantime a transaction is sourced, BCI reserves the right to request the TSX to reconsider its decision.
In addition, the Company announced today that Mr. John Bennett, who is involved in various litigation proceedings with the Company and who has been personally charged and indicted in the United States for conspiracy to provide kickbacks and defraud the United States (and who the United States Department of Justice is seeking to extradite due to his apparent unwillingness to appear voluntarily), is seeking to bring new claims against the Company. Mr. Bennett has changed his legal counsel, is seeking to bring proceedings in the Ontario court claiming defamation and other wrongs, and is seeking damages of $30 million plus interest and costs (including $5 million in punitive damages). BCI plans to vigorously contest Mr. Bennett's latest claims, which it believes to be entirely without foundation, abusive and improper.
Details of Mr. Bennett's indictment (Criminal No. 09-656 (JAE)) are available on the Internet.
We seek Safe Harbor.
|
