Rapid Dose Therapeutics Wins Summary Judgment Against CTT Pharmaceuticals. CTT’s Case is Dismissed.
March 5, 2019
BURLINGTON, Ontario – March 5, 2019 – Rapid Dose Therapeutics Corp. (“RDT” or the “Company”) (CSE: DOSE), a Canadian bio-technology company focused on innovative drug and active ingredient delivery solutions, is pleased to announce it has been successful in obtaining a summary judgment against CTT Pharmaceutical Holdings, Inc. (“CTT”) dismissing CTT’s lawsuit against RDT. Justice E.M. Morgan of the Ontario Superior Court of Justice wrote in the Court’s decision, “There is no genuine issue requiring a trial. The issue is dismissed” and ordered CTT to pay RDT $40,000 for legal fees incurred in the defense of the lawsuit launched in September 2018, in addition to $5,000 previously awarded against CTT for costs of a prior successful motion brought by RDT requesting security for costs relating to the lawsuit.
The Dismissal Order
In 2017, RDT had entered into an agreement with CTT to purchase its assets contingent upon RDT completing due diligence investigations to evaluate the patents and other assets and liabilities of CTT. During RDT’s investigations, issues arose that gave RDT serious cause for concern. CTT then terminated the agreement in October 2017. Jason Lewis, RDT’s SVP Business Development, stated that “Despite our best efforts, we were unable to validiate claims made by CTT about its intellectual property, its research, its financial positon, or its ability to actually produce the product, and CTT subsequently terminated the agreement.”
Less than a year later, in September 2018, while RDT was preparing to go public on the Canadian Securities Exchange, CTT launched a lawsuit against RDT claiming that information CTT had shared in 2017 had been used by RDT inappropriately to gain an advantage. RDT stood firm from the outset of the lawsuit that at no time had it misused confidential information provided to it by CTT. Mr. Lewis added that “We were determined to prove that at no time have we misused any information obtained during our due diligence efforts in 2017 to evaluate CTT and its product claims. In fact, the Court found that the information identified by CTT to the Court was not confidential at all.” Through the course of the lawsuit, affidavits and numerous documents were presented by CTT then reviewed and challenged by RDT through cross examinations of CTT’s witnesses. The Court heard critical information that completely exonerated RDT and its executive team against CTT’s claim that any confidential information was inappropriately used by RDT. Justice Morgan commented in the Court’s written decision that “the failure of the Plaintiff (CTT) to put evidence in the record that describes the nature of the information supposedly misused by the Defendant (RDT)…is fatal to this claim.” In respect of CTT, Justice Morgan observed that “The patents, however, were not commercially viable and the Plaintiff never managed to monetize them. The Plaintiff’s last available financial report shows that the Plaintiff has no operations, no cash flow, and is unlikely to generate cash flow in the foreseeable future. It also states that there is substantial doubt about the ability of the company to continue as a going concern.”
The Prior Motion
On January 29, 2019, Master Abrams of the Ontario Superior Court of Justice had ordered CTT to pay $50,000 to the Court as security for costs of these proceedings and $5,000 to RDT for the costs of the motion. Master Abrams stated in her reasons for the decision to require CTT to pay a security deposit that“ the Plaintiff ascribes no value to its patents and has admitted that its 2010 and 2014 patents have never been commercialized. The Plaintiff has not obtained Health Canada approval, is making no products, has no suppliers, has no distribution chains, has no opertions, and has no cashflow.”
Mark Upsdell, President and Chief Executive Officer of RDT, stated that “RDT is pleased with the decision of the Court to dismiss this lawsuit. We believe that the Court’s decision vindicates our Company and demonstrates that RDT’s commitment to good business practices, excellence in research and development, and building solid relationships with leading companies has created a solid foundation for growth. We can now put this matter behind us and continue to drive QuickStrip™ into the global market.”
RDT would like to express its sincerest appreciation to RDT’s legal counsel, Alan Lenczner and Derek Knoke of Lenczner Slaght, Toronto, for vigorously defending RDT in this matter and expeditiously bringing it to a successful conclusion.
About Rapid Dose Therapeutics
Rapid Dose Therapeutics Corp. is a publicly-traded Canadian biotechnology company providing innovative, proprietary drug delivery technologies designed to improve outcomes and quality of lives. RDT offers Quick, Convenient, Precise and Discreet™ choices to consumers. RDT is focused and committed to clinical research and product development for the healthcare manufacturing industry — including nutraceutical, pharmaceutical and cannabis industries. Within the cannabis sector, RDT also provides a turn-key Managed Strip Service Program enabling RDT’s QuickStrip™ proprietary drug delivery technology to be licensed to selectoperators in identified markets. RDT’s service-based annuity contracts drive recurring revenue and facilitate rapid expansion into emerging markets across multiple consumer segments. RDT is committed to continually create innovative solutions for humans, animals and plants.
For more information, visit: www.rapiddose.ca
For inquiries please contact:
Ofc (416) 477-1052
Ali Mahdavi, Managing Director
Spinaker Capital Markets Inc.
Ofc (416) 962-3300
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this news release may contain forward-looking information within the meaning of applicable securities laws.
Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “will”, “could”, “are planned to”, “are expected to” or the negative of these terms and similar expressions. Statements containing forward-looking information, including, without limitation, in respect of the delivery of equipment and products using the QuickStrip™ product delivery method, the generation of recurring revenues and the dismissal of the CTT lawsuit, express, as at the date of this news release, the plans, estimates, forecasts, projections, expectations or beliefs of RDT management as to future events or results and are believed to be reasonable based on information currently available to RDT management. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; termination of WLM agreements; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. There can be no assurance that statements of forward-looking information, although considered reasonable by RDT management at the time of preparation, will prove to be accurate as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Readers should not place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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