Covalon Technologies Ltd. (“Covalon”)(TSX VENTURE:COV) announces that it has commenced proceedings in the Ontario Superior Court of Justice against former chairman and CEO, John Robert Allan, his spouse and Durimport Marine Limited (“Durimport”), a corporation owned and controlled by them. Covalon is seeking the return and cancellation of 4.87 million Covalon common shares which Durimport received as consideration for the “Duri Collector”, a medical diagnostic device invented by Mr. Allan which has never achieved commercial viability. Covalon also seeks recovery of up to $600,000 in fees, salary and benefits paid to Mr. Allan or Durimport for Mr. Allan’s services as CEO of Covalon Technologies Inc. (“CTI”), a wholly owned subsidiary, between 1999 and 2003, and additional damages for losses suffered by CTI during Mr. Allan’s tenure as CEO. Durimport and the individual defendants have filed a defence to these claims and counterclaims against Covalon and two of its senior officers.
