TORONTO, ONTARIO--(Marketwired - July 12, 2016) - Superior Plus Corp. ("Superior") (TSX:SPB) announced today that it has commenced legal action to recover a $25 million termination fee from Canexus Corporation ("Canexus"). Superior terminated the Arrangement Agreement by notice of termination on June 30, 2016 specifying that Canexus made certain long term incentive compensation awards after signing the Arrangement Agreement without Superior's consent, thereby breaching the Arrangement Agreement. Canexus failed to remedy those breaches.
Superior made demands for payment of the termination fee on June 30, 2016 and again on July 5, 2016. Canexus has failed to pay the termination fee making this legal action necessary. Superior has also filed a statement of defence to Canexus' claim for a reverse termination fee of $25 million from Superior. Superior believes that Canexus' claim for the reverse termination fee is without merit and intends to vigorously defend Canexus' claim and pursue payment of the $25 million termination fee owed by Canexus.
About the Corporation
Superior consists of three primary operating businesses: Energy Distribution includes the distribution of propane and distillates, and supply portfolio management; Specialty Chemicals includes the manufacture and sale of specialty chemicals; and Construction Products Distribution includes the distribution of specialty construction products.
For further information about Superior, please visit our website at: www.superiorplus.com.
Forward Looking Information
This press release may contain forward-looking statements. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes. Forward-looking information in this Press Release includes but is not limited to Superior's assessment of Canexus' claim and Superior's intentions with respect to the litigation. Superior believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Superior's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the uncertainty and number of variables inherent in any complex litigation and the closing of any complex transaction and the other risks identified in the Corporation's 2015 Annual Information Form under the heading "Risk Factors", which is available on the SEDAR website (www.sedar.com). Any forward-looking information is made as of the date hereof and, except as required by law, Superior does not undertake any obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.