GUELPH, ON, Aug. 24 /CNW/ - ENPAR Technologies Inc. ("ENPAR") commenced arbitration against the Licensor of an important component of its DesEL System. This action arises from a purported termination by the Licensor of the Non-exclusive License Agreement. ENPAR believes that the Licensor has attempted to manufacture a breach of the Agreement to force ENPAR to renegotiate on terms more favourable to the Licensor.
The allegations of default are groundless in the view of the Board of Directors. ENPAR has retained Bennett Gastle Professional Corporation, Barristers & Solicitors in Toronto and Bingham McCutchen LLP in Boston. Deloitte & Touche have been retained to provide expert accounting opinions on certain issues at the arbitration.
Although unfortunate, ENPAR believes that this opportunity to confirm its compliance with the Non-exclusive License Agreement will provide the basis for continuance of the Agreement in good standing and prevent unjustified allegations of non-compliance in the future, at the time when the technology is commercialized.
ENPAR believes that the arbitration, which is expected to last from four to six months, will not interfere with its current business activities.
ENPAR will continue to aggressively market its 100% owned and patented/patent pending state-of-the-art electrochemical technologies for Ni recovery (ExtrEL), water treatment (AmmEL and NitrEL), and prevention of acid mine drainage (AmdEL).
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This news release contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause ENPAR Technologies Inc. results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof.