GeneNews (TSX:GEN) subsidiary, GeneNews (USA), Inc.,announced that it has reached a settlement agreement with the HDL Liquidating Trust for an outstanding $US 2,000,000 Secured Demand Promissory Note from the Company’s previously announced acquisitions of the full ownership of Innovative Diagnostic Laboratory.
As quoted in the press release:
On May 19, 2015, GeneNews announced that it had increased its ownership stake in IDL to 50% by issuing a one-year secured demand promissory note in the principal amount of US$ 1,000,000. On March 4, 2016, the Company concluded a second purchasing agreement, in which it acquired the remaining ownership interest in IDL, assuming the liability of former partner, Cobalt Healthcare Consultants, Inc.’s US$ 1,000,000 secured demand promissory note.
Under terms of the Agreement, which represents a compromise of disputed claims for both parties, GeneNews (USA) Inc., will pay the Trust an aggregate settlement amount of $2,095,843, to be paid in a $25,000 upfront payment, a $15,000 payment on a monthly basis from March 1, 2017 to July 1, 2017, followed by monthly payments of $10,000 until the outstanding debt has been paid in full. The Agreement will be submitted to the bankruptcy court for review and is expected to be approved before the end of March 2017.
“We are pleased to come to terms on this outstanding debt, which represents an equitable agreement for both parties and helps provide GeneNews with the financial flexibility to continue to execute against its business plan,” commented GeneNews Chairman and CEO, James Howard-Tripp.