FIT Biotech Oy
Company release 3.1.2019 at 15:30 EET
FIT Biotech has received a notice from the Finland Arbitration Institute concerning the request by Bracknor Invest to initiate arbitration proceeding under the FAI rules in relation to the termination of the finance agreement between Bracknor and the Company in December 2017
FIT Biotech ("Company", FITBIO: FN Finland) has today received a notice on Bracknor Investment's ("Bracknor") request dated 21 December 2018 to initiate arbitration proceedings based on a claim of approximately EUR 447 000 concerning alleged damages relating to the termination of the finance agreement between the parties in December 2017. This termination was made public by company release on December 23, 2017.
In FIT Biotech's view the claim has no contractual or legal merit. The damages described by Bracknor relate solely to loan conversions and trading on the Company's shares which have entirely been in and based on Bracknor's sole and independent control.
The Company signed a financing agreement with Alpha Blue Ocean ("ABO") in December 2017 which replaced the financing agreement with Bracknor, with the specific condition that ABO would hold the Company harmless and compensate all possible demands and claims to the Company deriving from the termination of the said Bracknor agreement. ABO in turn required that the Company shall transfer all claims, if presented, to ABO for independent handling. Based on this contractual stipulation the Company has transferred the matter to ABO, and ABO has named a Finnish attorney to handle the matter.
Hence under this stipulation with ABO, FIT Biotech regards that the claim presented by Bracknor does not in the end concern the Company, and no claim amount burdens the Company directly. Therefore the Company cannot at this point take any other stand on this matter. Should the matter in the future be presented to an arbitration tribunal or if there are other material developments the Company will issue further releases.
FIT BIOTECH OY
For further information:
CEO Erkki Pekkarinen
Tel: +358 44 027 0080
Certified Advisor: Aalto Capital Partners Oy, tel. +358 40 587 7000
About FIT Biotech
FIT Biotech Oy is a biotechnology company established in 1995. The company develops and licenses its patented GTU® (Gene Transport Unit) vector technology for new-generation medical treatments. GTU® is a gene transport technology that meets an important medical challenge in the usability of gene therapy and DNA vaccines.
FIT Biotech applies GTU® technology in its drug development programmes. Application areas include cancer (gene therapy) and infectious diseases such as HIV and tuberculosis, as well as animal vaccines.
FIT Biotech K shares are listed on the First North Finland marketplace maintained by Nasdaq Helsinki Oy.
NASDAQ OMX Helsinki