SmarTire Settles Legal Action
SmarTire and the company’s debenture holders have settled their recent legal dispute. The settlement includes all current debenture holders and means that recently filed legal actions against the company have been withdrawn. The settlement involves amended conditions to the conversion of current debentures, an immediate exercise of approximately 18.2 million warrants. The settlement also includes a lock-up provision that establishes a daily limit on the number of shares that can be traded by the debenture holders.
“We are very pleased that a mutually acceptable arrangement has been agreed to by all parties. This agreement with the debenture holders is a positive financial solution that enables us to concentrate on building a successful organization and shareholder value. The debenture holders have been extremely supportive to-date and we greatly appreciate their continued support as SmarTire aggressively pursues an increasing number of exciting business opportunities,” said Robert Rudman, president and CEO of SmarTire Systems.