Nerium Biotechnology Arbitral Award and Change in Directorships
TORONTO & SAN ANTONIO - Aug. 6, 2021 - PRLog -- Nerium Biotechnology, Inc. ("the "Company") announced today that a final award had been made on June 9, 2021 in the arbitration of its outstanding disputes with a former business partner and distributor of products. The disputes alleged various breaches of the settlement agreement entered into by the Company, and this partner, along with the partner's principals, that became effective on July 26, 2018. The arbitration ordered that the amount of US$1,666,666.35 being held in escrow be paid to Nerium SkinCare, Inc. and the remaining payment of $333,333.33 be paid to Nerium SkinCare, Inc. as originally agreed. However, the arbitrator also made substantial awards to the former distributor on the basis that the Company failed to make timely delivery of an order of Nerium Firm Body Contouring Cream purchased by the distributor in July 2018 and that the Company breached various restrictions on marketing and selling its products during the 10-month period ended May 31, 2019. Several other claims by both sides were dismissed by the arbitrator. The total amount of the awards against the Company, including prejudgment interest and legal fees, is US$10,620,487.50. The Company is evaluating its options in response.
The Company has not filed any continuous disclosure documents with the Ontario Securities Commission ("OSC") since November 30, 2020, due to the prohibitive cost of compliance. The Company does not intend to file any continuous disclosure documents with the OSC in the future and is considering applying to the OSC for an order to cease to be a reporting issuer.
The following directors of the Company had resigned on the following dates:
Dan Amadori resigned on December 11, 2020.
Michael Burke, Kerry Mitchell, Peter Leininger and Gustavo Ulloa resigned on June 14, 2021.
Dennis Knocke resigned as a director and officer on July 10, 2021.
Joseph B. Nester is the only remaining director and officer of the Company. He was appointed director on July 7, 2021.
Joseph Nester, Secretary-Treasurer