|By Marketwired .||
|July 10, 2014 04:24 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 07/10/14 -- In its previous press releases dated May 6, 2014, November 4, 2013 and May 22, 2013, Unique Broadband Systems, Inc. ("UBS" or the "Company") (TSX VENTURE: UBS.H) announced that (i) certain, but not all, of the claims of Jolian Investments Limited ("Jolian") and Mr. Gerald McGoey, in the aggregate approximate amount of $9.5 million, were disallowed in connection with the Company's ongoing CCAA proceedings, (ii) UBS was granted leave to appeal the judgment of the Honourable Madam Justice Mesbur in which she found that, pursuant to its services agreement with UBS (the "Jolian MSA"), Jolian was entitled to an enhanced severance as a result of the termination of its contract with UBS, which Jolian calculated to be an amount in excess of $4 million, and (iii) the Jolian parties brought a cross-appeal in respect of Justice Mesbur's decision disallowing their claim for payment of the cancellation of the Company's share appreciation rights plan and deferred bonus, and indemnification of legal fees and expenses.
The appeal and cross-appeal was heard on June 17, 2014.
The Company is pleased to report that the Court of Appeal released its decision today granting the Company's appeal and dismissing the Jolian parties' cross-appeal. The Court of Appeal upheld the Trial Judge's findings that McGoey breached his fiduciary duties owed to the Company and shareholders and held that under the correct interpretation of the Jolian MSA, Jolian is not entitled to receive any enhanced severance as a result of McGoey's wrongful conduct. As a result, the Jolian parties have been ordered to disgorge $200,000 that was advanced to the Jolian parties before McGoey was removed from the Company's board by shareholders and to pay the costs of the trial and the appeal.
The Court of Appeal decision is a vindication of the Company's opposition to the Jolian parties' claims at trial and its appeal of the trial decision.
A copy of the Court of Appeal decision and other information pertaining to the CCAA claims process can be found on the monitor's website at www.duffandphelps.com/restructuringcases under the UBS link.
About Unique Broadband Systems, Inc.
UBS's shares are listed on the NEX under the symbol "UBS.H". More information on UBS can be found at www.sedar.com.
The corporate information contained in this release includes forward-looking statements regarding future events and costs that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by UBS at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by UBS that actual results achieved will be the same in whole or in part as those forecast.
Neither the NEX nor its Regulation Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.
Unique Broadband Systems, Inc.