Royal Laser Corp.
TSX : RLC

Royal Laser Corp.

March 24, 2010 11:17 ET

Royal Laser Corp. Provides Update on Former Venture Steel Shareholder Litigation

TORONTO, ONTARIO--(Marketwire - March 24, 2010) - Royal Laser Corp. (the "Company" or "Royal Laser") (TSX:RLC) today announced that it will seek leave to appeal, to the Supreme Court of Canada, the Ontario Court of Appeal's decision in the action ("Action") relating to the termination of employment of Mr. William Link ("Link"), a former employee and shareholder of Venture Steel Inc. ("VSI"). VSI is a subsidiary of Royal Laser, and was acquired by Royal Laser on April 30, 2006. Prior to the purchase, the former owners of VSI terminated the employment of Link for alleged cause and purported to acquire his VSI shares for nominal consideration. In his Action, Link claimed damages for wrongful dismissal and for the value of his shares. 

In November, 2008, the Ontario Superior Court of Justice ("Court") awarded Link approximately $550,000 in severance, as well as approximately $3.2 million for the value of his VSI shares, as the Court determined that Link was a shareholder at the time of the VSI acquisition by Royal Laser. The Court also awarded Link approximately $225,000 for the value of certain dividend entitlements, and approximately $530,000 for the value of VSI options and warrants owned by Link at the time of the VSI acquisition by Royal Laser, as well as costs and interest.

VSI appealed the portion of the Court's decision relating to Link's share, dividend and severance entitlement to the Ontario Court of Appeal. The portion of the Court's decision related to the value of options and warrants owned at the time of the acquisition was not appealed. Royal Laser paid approximately $1.4 million to Link following the Court's decision. In addition, the Company accrued a liability of approximately $3.8 million commencing in its Q3 Fiscal 2009 financial statements.

On March 1, 2010, the Ontario Court of Appeal overturned Link's dividend entitlement but upheld his claim for the value of his VSI shares. VSI is seeking leave to appeal the Ontario Court of Appeal's decision relating to the claim for share value. 

In addition, Royal Laser will seek to recover the approximately $3.2 million judgment from the prior owners of VSI.

About Royal Laser Corp.

Royal Laser Corp., through its operations, services, processes and distributes flat-rolled steel targeted at the multi-billion dollar automotive OEM, automotive after-market, and custom fabricates products for the industrial, environmental, automotive and construction industries in Canada, the United States and recently Mexico. The Company's common shares trade on the Toronto Stock Exchange under the symbol "RLC" and there are approximately 97 million shares outstanding.

For further information on the Corporation, please visit SEDAR at www.sedar.com.

To receive Company news by email, please contact info@royallaser.com and specify "Royal Laser news" in the subject line. 

Forward-Looking Statements

Certain statements contained in this press release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and other factors, many of which are beyond our control, and are as discussed under the heading "Trends, Risks and Uncertainties" and in the Annual Information Form of Royal Laser dated June 29, 2009 and filed on SEDAR at www.sedar.com, as well as Royal Laser's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, Royal Laser Corp. disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained herein is expressly qualified by this cautionary statement.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Royal Laser Corp.
    Beric Sykes
    Co - Chief Executive Officer
    (416) 798-9396
    or
    Royal Laser Corp.
    Niral Merchant
    Chief Financial Officer
    (416) 798 9396