Zentek wins court case, avoids $6 million in claims

Zentek Ltd. (NASDAQ: ZTEK) announced that the Ontario Superior Court of Justice dismissed claims originally exceeding $6 million against the company in a long-standing litigation case.

The court issued its judgment on March 12 in the case involving Aubrey Eveleigh, the company's founder and former president and chief executive officer, who was removed by shareholders at a special meeting in May 2018.

The court denied all remaining monetary claims advanced by Eveleigh and his consulting firm, Eveleigh Geological Consulting Inc. These included a success fee claim of $282,500, severance claims totaling $1.35 million, unpaid wages of $51,748.82, defamation damages of $75,000, and indemnification claims of approximately $194,000.

The court found that the severance claims were void and unenforceable due to breaches of fiduciary duty. The success fee claim was denied because the required pre-feasibility study was never commenced. The defamation claim was rejected after the court determined the relevant statements were factually accurate.

Regarding Zentek's counterclaim for cancellation of 4.5 million founder shares and disgorgement of profits, the court ruled that the shares had been properly issued and found no basis to set aside the issuance.

"This judgment closes a chapter that has been part of Zentek's history," said Moe Jiwan, CEO of Zentek, according to the company's statement.

Zentek is a Canadian intellectual property development and commercialization company that advances graphene-enabled and advanced material technologies. The company operates through its core platforms Albany Graphite, ZenGUARD, and Triera.

You May Also Be Interested In

• Zscaler to cut 3% staff
• Pioneer Power (PPSI) files $150M mixed shelf
• Ralph Lauren names new chief operating & product officer