AdvanSource Biomaterials Announces Favorable Settlement in Connection with MEDOS Dispute (8/12/09)
On August 6, 2009, the company entered into a settlement agreement and mutual release (the “settlement”) with MEDOS whereby MEDOS agreed to repay to the company approximately $580,000 of the escrow funds previously released to MEDOS in full and final settlement of its indemnity claims. In addition, the company’s obligation with respect to a previously acknowledged $149,000 post-closing adjustment will be eliminated. The parties have also agreed to dismiss the previously filed demand for arbitration.
The terms of the settlement provided for MEDOS to (i) remit a cash payment of approximately $87,000 upon the execution of the Settlement and (ii) issue a promissory note to the company in the approximate amount of $493,000, maturing on February 1, 2010 with equal monthly principal payments of approximately $70,000 plus accrued interest at the rate of 3.25% per annum.
For more information, visit: www.advbiomaterials.com.