Brompton Corp.

Brompton Corp.

July 07, 2017 16:39 ET

Brompton Corp. Successful in Claim against Tuckamore Holdings LP

TORONTO, ONTARIO--(Marketwired - July 7, 2017) - On July 6, 2017, the Court of Appeal for Ontario dismissed Tuckamore Holdings LP's ("Tuckamore") appeal of the February 1, 2017 decision by the Ontario Superior Court of Justice (Commercial List) granting Brompton Corp.'s ("Brompton" or the "Company") motion for summary judgment in respect of the Company's indemnification claim against Tuckamore. As a result, Tuckamore is liable to indemnify the Company in respect of certain liabilities under a share purchase agreement dated July 5, 2011. Pursuant to an order of the Ontario Superior Court of Justice (Commercial List) dated February 1, 2017, Tuckamore has been directed to pay Brompton approximately $4.6 million for these liabilities, interest and costs (as of February 1, 2017) and Tuckamore is liable to indemnify the Company for additional interest and legal costs that have accrued since February 1, 2017 and that will continue to accrue/be incurred. In addition, Tuckamore is liable for Brompton's legal costs related to the motion for summary judgment and the appeal to the Court of Appeal Ontario of approximately $220,000. The Company's motion for summary judgment was in respect of an indemnification claim relating to previously disclosed notices of reassessment that the Company had received from the Canada Revenue Agency ("CRA") for taxation years ending in 2010 to 2014. The notices of reassessment remain in dispute with CRA. Based on publicly available corporate filings, Tuckamore is a wholly-owned subsidiary of ClearStream Energy Services Inc.

For additional information concerning the Company, please visit our website at www.bromptoncorp.com.

Mark A. Caranci Craig T. Kikuchi
President & CEO Chief Financial Officer
Brompton Corp. Brompton Corp.
(416) 642-9061 (416) 642-9061

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements. Since forward-looking statements and forward-looking information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of risk factors.

The Company assumes no obligation to update forward-looking statements or information except as may be required by applicable securities laws.

Contact Information

  • Mark A. Caranci
    President & CEO
    Brompton Corp.
    (416) 642-9061

    Craig T. Kikuchi
    Chief Financial Officer
    Brompton Corp.
    (416) 642-9061