Business
Ucore Updates and Reiterates Position on Acquisition of IBC
Halifax, Nova Scotia--(Newsfile Corp. - February 21, 2019) - Ucore Rare Metals Inc. (TSXV: UC...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Ucore Updates and Reiterates Position on Acquisition of IBCHalifax, Nova Scotia--(Newsfile Corp. - February 21, 2019) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (\"Ucore\" or the \"Company\") announces its acknowledgement of a press release issued by IBC Advanced Technologies, Inc. (\"IBC\") on February 20, 2019, at 9:00 AM EST. This press release purports to announce IBC's decision to terminate the letter agreement, dated March 14, 2015, between Ucore and IBC, entitled \"Option to Purchase IBC\", as amended and extended (the \"Option Agreement\"). \"This is not an unexpected maneuver on the part of IBC, as Ucore exercises its contractual right to acquire the target company,\" said Jim McKenzie, President and CEO of Ucore. \"We believe IBC has materially appreciated in value since the execution of the Option Agreement. As with all assets experiencing appreciation, the vendor may be tempted to seek a progressively higher purchase price, or free agency, after a deal has already been fully secured.\" \"In turn, all corporate acquisitions will experience an inflection point prior to the completion of sale, when motivated parties will attempt to cast doubt on the unfolding events,\" continued McKenzie. \"This is understandable and within the bounds of expectation. A frequent strategy is to allege 'manufactured breaches' by the purchaser. In the case at hand, IBC has approached Ucore with a number of professed material breaches, all of which Ucore categorically denies and contrary to IBC's claims, have been adequately addressed. Further, the major financial backers of Ucore have reviewed the IBC agreements and concur that allegations of material breach are invented and without merit.\"\"These financiers stand solidly behind Ucore,\" concluded McKenzie. \" We have their full support for the Company's vision and plan to transition as a leading provider of advanced mineral separation products and services to the mining and minerals extraction sectors.\" BackgroundBoth sides in this contractual dispute are seeking court intervention to resolve the dispute and enforce compliance with the agreements between the parties. Ucore asserts the Option Agreement is a valid and enforceable agreement that has the express contractual support of IBC shareholders holding a majority of the shares of IBC. IBC alleges that the Option Agreement has...