IC Potash (TSX:ICP) (OTCQB:ICPTF) (“IC Potash” or the “Company”) is pursuing a lawsuit in the state of Colorado to unwind a very dilutive financing undertaken by Cartesian Capital (“Cartesian”) which IC Potash believes was done solely in order to gain full control of the Ochoa Deposit at a price significantly below fair market value. The Company believes this matter will come before the Colorado courts within the next month.
IC Potash also announces that it was recently served with a lawsuit commenced by Cartesian and two of its Principals, Peter Yu and Paul Hong, on behalf of Cartesian investors in the State of New York.
Mehdi Azodi, President of IC Potash said:
“Notwithstanding that the lawsuit is frivolous in and of itself, the board of IC Potash believes that commencing the lawsuit in New York rather than Colorado shows a certain desperation and concern on Cartesian’s part to distract attention from the Colorado proceedings, which we believe could have a significant deleterious effect on Cartesian and its investors.”
The New York lawsuit, which will be vigorously defended by IC Potash, alleges on the most general of grounds and without a great deal of specificity that, among other things, IC Potash withheld certain information from Cartesian and delayed contractual decisions.
IC Potash and its board will continue to take all necessary measures to protect its investment in the Ochoa Deposit and to prevent it from being seized at below market prices.