Tony G Co-Investment Holdings Announces Conclusion of Litigation

Rhea-AI Summary

Tony G Co-Investment Holdings (CSE: TONY) has successfully concluded its litigation with European High Growth Opportunities Manco SA (EHGO). The Ontario Superior Court ruled in favor of the company on several key points:

The Court determined that EHGO was not entitled to their claimed $1,288,000 payment under the August 10, 2021 debenture, confirming it had automatically converted into 1,312,946 previously issued common shares. While EHGO sought $859,809.43 in damages and interest for late share issuance plus costs, the Court rejected their calculation. The final settlement required Tony G to pay $269,654.04 in total damages, interest, and costs to EHGO.

CEO Gediminas Klepackas expressed satisfaction with the favorable court rulings, affirming the company's commitment to protecting its interests and enforcing contractual rights.

Positive

• Court rejected EHGO's $1,288,000 payment claim
• Settlement amount reduced to $269,654.04 from claimed $859,809.43
• Litigation concluded with favorable ruling for the company

Negative

• Company required to pay $269,654.04 in damages, interest, and costs

Toronto, Ontario--(Newsfile Corp. - February 26, 2025) - Tony G Co-Investment Holdings Ltd. (CSE: TONY) (the "Company") announces that, on January 24, 2025 and February 20, 2025, Justice C. Stevenson provided supplementary reasons with respect to the amounts payable by the Company pursuant to his December 13, 2024 decision in the Company's litigation in the Ontario Superior Court of Justice with European High Growth Opportunities Manco SA ("EHGO"), as described by the Company in its news release dated December 23, 2024. The Company also reports that it has paid all amounts determined by the Court to be payable in accordance with its decision and supplementary reasons, and all outstanding issues in the litigation have now been finally disposed.

The Court determined that EHGO was not entitled to the payment of $1,288,000 that it claimed to be owing under the debenture dated August 10, 2021, issued by the Company to it, and that the debenture had automatically converted into 1,312,946 previously issued common shares of the Company in accordance with the terms of the debenture. EHGO claimed that it was entitled to $859,809.43 in damages and interest for the late issuance of these shares as well as costs. In its supplementary reasons, the Court rejected EHGO's calculation of damages and costs payable by the Company. Pursuant to the Court's supplementary reasons, the Company paid a total of $269,654.04 in damages, interest, and costs to EHGO to fully dispose of the litigation. 

Gediminas Klepackas, Chief Executive Officer of the Company commented "We are pleased with the favourable rulings of the Court and to have concluded the litigation. The Company's leadership is committed to continuing to protect the Company, including by enforcing its contractual rights and placing its interests ahead of any conflicting interests of others."

For more information, please contact:

Gediminas Klepackas
Chief Executive Officer
Tel: (647) 365-2867
Email: contact@tony.holdings

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, concerning the conclusion of its litigation with EHGO and the commitment of the Company's leadership to enforcing contractual rights and protecting the Company. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among others, that the litigation is subject to any appeal and any other unforeseen factors. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statement prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The forward-looking information contained in this news release represents the expectations of the Company as of the date hereof and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While the Company may update this information, it does not undertake to do so.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242481

FAQ

What was the outcome of Tony G Co-Investment Holdings' litigation with EHGO?

The Court ruled in Tony G's favor, rejecting EHGO's $1,288,000 payment claim and reducing their damages claim from $859,809.43 to a final settlement of $269,654.04.

How many shares were involved in the EHGO debenture conversion for TONY stock?

The debenture automatically converted into 1,312,946 previously issued common shares of the company.

When did the Ontario Superior Court issue its final decision on the TONY litigation?

The Court provided supplementary reasons on January 24, 2025 and February 20, 2025, following the initial December 13, 2024 decision.

What was the total settlement amount paid by Tony G Co-Investment Holdings in the EHGO lawsuit?

The company paid a total of $269,654.04 in damages, interest, and costs to fully settle the litigation.