Photon settles litigation with Photon Control R&D
Photon Control Inc (C:PHO)
Shares Issued 108,485,718
Last Close 4/7/2017 $1.58
Monday April 10 2017 - News Release
Mr. Neil McDonnell reports
PHOTON CONTROL ANNOUNCES COMPLETION OF SETTLEMENT AGREEMENT WITH PHOTON R&D
Photon Control Inc. has executed a definitive binding agreement to settle its outstanding litigation with Photon Control R&D Ltd. and certain others, as well as the counterclaims filed by R&D against the company. In addition, as part of the agreement, the Company acquires certain inventory and equipment from of R&D, and hires employees of R&D.
With the closing of the settlement:
Photon Control will acquire full ownership of all intellectual property, products, trademarks and other assets previously under dispute, and currently owned by R&D
R&D employees will be transferred to and hired by Photon Control
The Company will pay 4.25% of certain of its revenues to the former R&D ownership commencing January 1, 2017 for a period of five years. This arrangement reduces the royalty rate currently paid by the Company by more than 50% and decreases the term of the previous agreements by five years
Both parties will settle all outstanding legal disputes at closing
R&D and its principals agree to non-competition arrangements with the Company
"With this settlement our entire newly-combined organization under CEO Scott Edmonds will focus solely on creating shareholder value by completely serving the growing needs of our expanding customer base," said Neil McDonnell, Photon Control's Chair of the Board. "This agreement also provides our valued customers with much needed assurance and stability and at the same time adds a strong cohort of talented industry experts to our research and product development teams. We would like to thank Chris and Mike Weston and David Dueck for the many contributions they have made to the success of the Company since 2008. In particular, Mr. Dueck's conduct throughout this process belies any negative comments previously made by others regarding his character." |
