Aphex BioCleanse Systems, Inc (OTC:SNST) Suspends Director Scott Smith

Rhea-AI Summary

Aphex BioCleanse Systems, Inc. (OTC Pink: SNST) has announced that Board Member Scott Smith has filed a legal action against the company and two of its directors on February 10, 2022.

The lawsuit is seen as detrimental to shareholders, as it appears to serve Smith's personal interests rather than those of the company. This action violates the Schoon Doctrine, which prohibits directors from pursuing actions not aligned with shareholder interests. In response, the Board has suspended Smith from his duties pending a full investigation.

Positive

• The company's innovative technology, Hy-IQ® Water, continues to position it as a leader in non-toxic sanitization solutions.

Negative

• Scott Smith's legal action against the company could lead to potential financial and reputational harm.
• The lawsuit violates the Schoon Doctrine, which could result in further legal ramifications for the company.

PITTSFORD, NY, Feb. 18, 2022 (GLOBE NEWSWIRE) -- Aphex BioCleanse Systems, Inc. (OTC Pink: SNST), a forward-thinking, publicly traded company, announces it has come to the attention of the Board of Directors of Aphex BioCleanse Systems, Inc., that on February 10, 2022, Board Member Scott Smith filed a legal action in the U.S. District Court for Massachusetts against the Company and two of its Directors.

The object of the lawsuit is not to benefit the Company's shareholders but to financially benefit Scott Smith individually, and the litigation potentially damages shareholder interests. This litigation also clearly violates the "Schoon Doctrine", (Schoon v. Smith, No. 554, 2006 Del. Feb. 12, 2008)

The Schoon Doctrine supports that acting Directors cannot bring actions against the Company, its Directors and/or Officers that are not in the interests of the Company and as such breaches the fiduciary responsibility of each the Director to the shareholders.

Accordingly, the Chairman of the Aphex Board of Directors, Thomas Fitzgerald has determined, effective immediately, to suspend Scott Smith from any, and all duties as a Board Director, pending a complete investigation of this matter and allow a review by the other full Board members.

Investor Contact:
Jon Olson, CEO
Milestone Management Services
Jon@milestonemanagementservicesllc.com
702-217-9518
https://aphexus.com/

About Aphex BioCleanse Systems, Inc.
Aphex BioCleanse Systems, Inc. is the developer of the world's first proprietary non-alcohol, non-toxic, hydrogen-based cleaning technology, and has been producing germ killing solutions for over 10 years. The technology, called Hy-IQ® Water, has a unique method of sanitizing that uses hydrogen ions traveling nearly at the speed of light to breach the cell walls of exoskeleton germs. “We Kill Germs with Physics, Not Chemistry” is a tagline that expresses their commitment to the environment by providing non-Chemical solutions to the spread of dangerous pathogens.  Killing the most dangerous germs on the planet, while meeting the EPA’s definition of “Water” is revolutionary. With world leading teams and technology, Aphex is doing its part to make the world a safer place. To find out more about Aphex and their technologies, visit: Aphex BioCleanse Systems, Inc. - Superior Sanitization (aphexus.com).

Forward Looking Statements
This current press release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future, including but not limited to, any products sold or cash flow from operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with distribution and difficulties associated with obtaining financing on acceptable terms. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all the information set forth herein and should also refer to our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

FAQ

What legal action was filed against Aphex BioCleanse Systems (SNST) on February 10, 2022?

On February 10, 2022, Board Member Scott Smith filed a lawsuit against Aphex BioCleanse Systems and two of its directors.

How does Scott Smith's lawsuit affect SNST shareholders?

The lawsuit is perceived as a threat to shareholder interests as it appears to benefit Scott Smith personally rather than the company.

What is the Schoon Doctrine related to the SNST legal case?

The Schoon Doctrine prohibits acting directors from bringing actions against the company that do not align with shareholder interests.

What action has been taken by Aphex BioCleanse Systems' Board regarding Scott Smith?

The Board has suspended Scott Smith from all duties as a director pending an investigation into the lawsuit.