Unique Broadband Systems, Inc.

Unique Broadband Systems, Inc.

December 11, 2014 11:17 ET

Release of Cost Order

TORONTO, ONTARIO--(Marketwired - Dec. 11, 2014) - In its previous press release dated July 10, 2014, Unique Broadband Systems, Inc. ("UBS" or the "Company") (TSX VENTURE:UBS.H) announced that the Court of Appeal released its decision granting the Company's appeal and dismissing the cross-appeal brought by Mr. Gerald McGoey ("Mr. McGoey") and Jolian Investments Limited ("Jolian", and together with Mr. McGoey, the "Jolian Parties"). The Court of Appeal upheld the trial judge's findings that Mr. McGoey breached the fiduciary duty that he owed to the Company and held that Jolian is not entitled to receive any enhanced severance as a result of Mr. McGoey's wrongful conduct, as it constituted "cause" under Jolian's Management Services Agreement with the Company.

The Court of Appeal ordered that the parties attend before the trial judge to fix the costs of the trial if the parties could not otherwise agree on the scale and/or quantum of the costs. On December 8, 2014, the trial judge, Madame Justice Mesbur, released her decision on costs of the trial, having received submissions from all parties. Her Honour concluded that the Jolian Parties are jointly and severally liable to pay UBS' costs on a substantial indemnity basis amounting to $995,000 for fees, plus HST in the amount of $129,350, together with disbursements inclusive of HST of $199,667 for a total of $1,324,017.

This cost order is in addition to Her Honour's order at trial that the Jolian Parties disgorge $200,000 that was advanced to them before Mr. McGoey was removed from the Company's board of directors by shareholders and the order of the Court of Appeal that the Jolian Parties pay the costs of the appeal, set by the Court of Appeal at $60,000.

Accordingly, the total amount owing to UBS by the Jolian Parties is $1,584,017.

A copy of the Second Decision on Costs and other information pertaining to the CCAA claims process can be found on the monitor's website at www.duffandphelps.com/restructuringcases under the UBS link.

About Unique Broadband Systems, Inc.

UBS's shares are listed on the NEX under the symbol "UBS.H". More information on UBS can be found at www.sedar.com.

The corporate information contained in this release includes forward-looking statements regarding future events and costs that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by UBS at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by UBS that actual results achieved will be the same in whole or in part as those forecast.

Neither the NEX nor its Regulation Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Unique Broadband Systems, Inc.
    Grant McCutcheon
    (905) 660-8100