Press release from Marketwire
BENEV Capital Inc. Announces Voluntary Delisting from the Toronto Stock Exchange, and New Litigation Involving John Bennett
Wednesday, June 19, 2013
BENEV Capital Inc. Announces Voluntary Delisting from the Toronto Stock Exchange, and New Litigation Involving John Bennett15:59 EDT Wednesday, June 19, 2013
OAKVILLE, ONTARIO--(Marketwired - June 19, 2013) - BENEV Capital Inc. (TSX:BEV) (the "Company" or "BCI") announced today that the Toronto Stock Exchange (the "TSX") has determined that, following the sale of BCI's waste treatment plant in Saint Ambroise, Quebec, it no longer meets the TSX's requirements for continued listing. Accordingly, BCI intends to apply in the near future to the TSX Venture Exchange, and/or its NEX Division, to list its common shares, and plans to voluntarily delist from the TSX. BCI will seek to minimize any time gap between the TSX delisting and obtaining a new listing. There can be no assurance, however, that a new listing will be obtained or, if so, when.
The Company has significant cash resources, amounting to approximately $71 million as at June 17, 2013, and continues to seek to source, structure and complete one or more transactions designed to transform the Company and create meaningful value for shareholders. Such transactions may involve, among other things, one or more of an acquisition, a merger, a strategic investment. A return of capital, special dividend and/or dissolution may also be considered. The sale of the plant was the first step in this direction, and the Company believes it will increase its range of options and provide it with enhanced flexibility on a go forward basis. In the meantime, the Company intends to manage its cash conservatively, reduce its expenses where appropriate and remain prudent and patient.
If in the meantime a transaction is sourced, BCI reserves the right to request the TSX to reconsider its decision.
In addition, the Company announced today that Mr. John Bennett, who is involved in various litigation proceedings with the Company and who has been personally charged and indicted in the United States for conspiracy to provide kickbacks and defraud the United States (and who the United States Department of Justice is seeking to extradite due to his apparent unwillingness to appear voluntarily), is seeking to bring new claims against the Company. Mr. Bennett has changed his legal counsel, is seeking to bring proceedings in the Ontario court claiming defamation and other wrongs, and is seeking damages of $30 million plus interest and costs (including $5 million in punitive damages). BCI plans to vigorously contest Mr. Bennett's latest claims, which it believes to be entirely without foundation, abusive and improper.
Details of Mr. Bennett's indictment (Criminal No. 09-656 (JAE)) are available at http://www.justice.gov/atr/cases/f250100/250158.htm.
Forward Looking Statements
Certain statements contained in this press release and in certain documents incorporated herein by reference may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "confident", "plan" and "intends" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of BENEV Capital Inc. to differ materially from those anticipated or implied in such forward-looking statements. BENEV Capital Inc. believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Given these uncertainties, readers are cautioned that forward-looking statements included in this press release are not guarantees of future performance, and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date of this press release. BENEV Capital Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
All of the forward-looking statements made in this Press Release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, BENEV Capital Inc.
FOR FURTHER INFORMATION PLEASE CONTACT:
BENEV Capital Inc.
President and CEO
(905) 339-1540 Ext. 202