Business
Zefiro Founder and Former Chairman Reports Initial Success in New York Litigation
NY Litigation was used as a pretext for a frivolous investigation into Dr. Debs which was launched by Board at considerable expense to ShareholdersTORONTO, March 02, 2026 (GLOBE NEWSWIRE) -- Dr. Talal A. Debs, Founder and Director of Zefiro Methane Corp. (Cboe: ZEFI) ("Zefiro" or the “Company”), is pleased to announce that a preliminary injunction sought by a related party of the Company before the courts in New York was denied on February 27, 2026. David McGrath, who has worked with the board o
About this update from Zefiro Methane Corp.
[{"type":"text","content":"NY Litigation was used as a pretext for a frivolous investigation into Dr. Debs which was launched by Board at considerable expense to Shareholders","length":147,"tagName":"p"},{"type":"text","content":"TORONTO, March 02, 2026 (GLOBE NEWSWIRE) -- Dr. Talal A. Debs, Founder and Director of Zefiro Methane Corp. (Cboe: ZEFI) ("Zefiro" or the “Company”), is pleased to announce that a preliminary injunction sought by a related party of the Company before the courts in New York was denied on February 27, 2026.","length":316,"tagName":"p"},{"type":"text","content":"David McGrath, who has worked with the board of directors of the Company (the “Board”) to seek to entrench the incumbent directors, brought a motion for preliminary injunction in New York on December 23, 2025. The motion was heard Tuesday February 24 and continued February 27, 2026. After hearing testimony from Dr. Debs and Mr. McGrath and after considering the arguments of counsel, the Court denied the motion on February 27, 2026. It did so on the grounds that Mr. McGrath has neither proven a likelihood of success on his claims nor irreparable harm. Dr. Debs, X Machina Capital Strategies Fund I GP LLC (“XMC”), and X Machina Capital Strategies LP (“XMST” and, collectively with Dr. Debs and XMC, the “Concerned Shareholders”) have filed a motion to dismiss the case (the “NY Litigation”). The motion to dismiss has been scheduled for March 19, 2026.","length":857,"tagName":"p"},{"type":"text","content":"It is important to note that the NY Litigation was used by the incumbent directors as a pretext for a frivolous investigation into Dr. Debs which was launched by the incumbent directors at considerable expense to shareholders and was followed by a series of bad faith steps taken by the incumbent directors seeking to entrench themselves. This includes the issuance of 13,214,494 common shares of the Company (the “Debt Settlement Shares”) to the Company’s interim CEO Catherine Flax, David McGrath and Mr. McGrath’s brother-in-law (Michael McGavick) on January 27, 2026, the date immediately prior to the record date for the annual general and special meeting (the “Meeting”) of shareholders of Zefiro currently scheduled to be held on March 20, 2026. The Concerned Shareholders are asking the British Columbia Securities Commission at a hearing to be continued on March 3 and 4, 2...