Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

August 14, 2006 12:57 ET

Covalon Takes Action Against Former CEO

MISSISSAUGA, ONTARIO--(CCNMatthews - Aug. 14, 2006) - Covalon Technologies Ltd. ("Covalon")(TSX VENTURE:COV) announces that it has commenced proceedings in the Ontario Superior Court of Justice against former chairman and CEO, John Robert Allan, his spouse and Durimport Marine Limited ("Durimport"), a corporation owned and controlled by them. Covalon is seeking the return and cancellation of 4.87 million Covalon common shares which Durimport received as consideration for the "Duri Collector", a medical diagnostic device invented by Mr. Allan which has never achieved commercial viability. Covalon also seeks recovery of up to $600,000 in fees, salary and benefits paid to Mr. Allan or Durimport for Mr. Allan's services as CEO of Covalon Technologies Inc. ("CTI"), a wholly owned subsidiary, between 1999 and 2003, and additional damages for losses suffered by CTI during Mr. Allan's tenure as CEO. Durimport and the individual defendants have filed a defence to these claims and counterclaims against Covalon and two of its senior officers.

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Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    CFO & COO
    (905) 568-8400
    (905) 568-5200 (FAX)
    www.covalon.com