Diversinet Corp.

Diversinet Corp.

July 08, 2014 15:08 ET

Diversinet Announces End of Reporting Issuer Status and Provides Update on Liquidation Proceedings

TORONTO, ONTARIO--(Marketwired - July 8, 2014) - Diversinet Corp. ("Diversinet"), by Duff & Phelps Canada Restructuring Inc. (the "Liquidator"), in its capacity as the Court-appointed Liquidator of Diversinet, today announced that the Ontario Securities Commission, the Alberta Securities Commission and the British Columbia Securities Commission have issued a decision deeming Diversinet to have ceased being a reporting issuer under Canadian securities legislation, in accordance with Diversinet's previously announced application for such a decision. A copy of the decision is available on the website established by the Liquidator at www.duffandphelps.com/restructuringcases.

As a result of the decision, Diversinet is no longer required to comply with the continuous disclosure and similar provisions in Canadian securities legislation. However, Diversinet shareholders will still have access to relevant information relating to Diversinet as the Liquidator intends to continue to post information on the website referred to above, and shareholders are advised to check that website from time to time for updates. In addition to the obligations imposed upon the Liquidator pursuant to the Business Corporations Act (Ontario), the Liquidation Plan requires the Liquidator to report to Diversinet's shareholders at such times and intervals as the Liquidator may deem appropriate with respect to matters relating to Diversinet, its assets and such other matters as may be relevant to the Liquidation Plan. In this regard, the Liquidator provides the following update on the status of the Liquidation proceedings:

  • The Liquidator has completed its administration of the Court-approved claims procedure, the purpose of which was to solicit claims against Diversinet, its subsidiaries and its directors and officers. All claims have been resolved as at the date of this press release;
  • Diversinet's assets under the Liquidator's administration are: (i) cash of approximately US$3.5 million, of which US$1.75 million is on deposit in an escrow account with Wells Fargo Bank, National Association in accordance with the provisions of a transaction with IMS Health Incorporated completed by Diversinet prior to the commencement of its Liquidation proceedings. The cash in the escrow account is expected to be released to the Liquidator in September, 2014; and (ii) accounts receivable of C$135,000;
  • The Liquidator has filed an application for Clearance Certificates pursuant to the Income Tax Act (Canada) (the "Clearance Certificates"). The Liquidator will facilitate the final distribution to shareholders once the Clearance Certificates are obtained from Canada Revenue Agency ("CRA"). CRA's process for issuing Clearance Certificates is typically lengthy and, accordingly, the timing of a shareholder distribution is unknown at this time; and
  • The Liquidator anticipates the quantum of the distribution to shareholders to meet or exceed the range provided by Diversinet in its press release dated September 13, 2013, being US$0.05 to US$0.065 per share.

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