ONEnergy Provides Update on Former Officer and Director Litigation

 

TORONTO, ON / ACCESSWIRE / May 5, 2014 / ONEnergy Inc. ("ONEnergy" or the "Corporation") (TSXV: OEG and OEG.A), a growing provider of innovative energy and energy conservation products and services to residential, industrial and commercial customers in North America, today provided an update on its ongoing litigation regarding payments made to former officers and directors of the Corporation. ONEnergy continues to aggressively pursue recovery of payments made to the former officers and directors, and substantial progress was made in 2013 and during Q1 2014. Progress made includes:

-the Ontario Court of Appeal dismissed the appeal from Justice Pattillo's dismissal of applications for advances of defence costs recognizing the Corporation had presented evidence to overcome the presumption of good faith and that established a strong prima facie case of mala fides, or bad faith, that was likely to succeed at trial. Subsequently, the Supreme Court of Canada also refused to grant leave to appeal from the Court of Appeal's decision;

-examinations for discovery of the Corporation concluded on April 28 and examinations for the action as a whole are effectively concluded;

-a mediation with all defendants in the main action and also with Stikeman Elliott is scheduled for July 30 and 31, 2014 with the Honorable George Adams, QC;

-a pre-trial is now scheduled for September 4, 2014;

-the Court directed that the parties be ready for trial this year, and the Corporation is seeking a trial at the earliest possible date and expects that a trial will take place late in 2014 or early 2015; and

-the Corporation's legal costs related to this litigation are expected to decline significantly in 2014 should mediation be successful or if mediation results in a significant narrowing of issues and parties.

Management continues to believe it has a strong case and intends to vigorously pursue recoveries for the benefit of the Corporation's shareholders.

About ONEnergy Inc.

ONEnergy, through Sunwave (www.gosunwave.com), is a provider of innovative energy products to residential, industrial and commercial customers. ONEnergy provides homeowners and business with competitively priced conventional and environmentally-friendly green natural gas and electricity in Ontario and conventional and green electricity in Connecticut and Pennsylvania. Through its Home Comfort division, the Corporation provides residential heating, ventilation, & air conditioning rentals, sales and installation, and provides heating and air conditioning equipment, tankless and conventional hot water systems and other in-home and commercial appliances, products and services in Ontario, Alberta and Manitoba.

ONEnergy shares are listed on the TSX Venture Exchange under the symbols "OEG" for Multiple Voting Shares and "OEG.A" for Subordinate Voting Shares. ONEnergy's website may be found at www.onenergyinc.com.

Mark Lewis

Chief Executive Officer

ONEnergy Inc.

[phone]

Ray de Ocampo

Chief Financial Officer

ONEnergy Inc.

[phone]

Ali Mahdavi

Capital Markets & Investor Relations

Spinnaker Capital Markets Inc.

[phone]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE: ONEnergy Inc.