Aqua Bio Technology and Access Business Group Dispute resolved
by Hans Christian Leren | Feb 2, 2018
Aqua Bio Technology ASA (ABT) has entered into a settlement with Access Business
Group International LLC (Access), resolving the parties' dispute from 2016.
ABT has entered into a settlement with Access. ABT entered into the settlement
to reduce the ongoing litigation and arbitration costs and to allow ABT's
management to focus fully on the commercialization of the company's new
ingredients and cosmetic products.
The settlement entails that ABT will pay $15,000 to a charitable organization
and that each party will carry its own costs.
In March 2016, Access filed a Complaint and an Application for a Temporary
Restraining Order and Preliminary Injunction with a federal court in New York,
claiming violation of a contractual obligation to deliver an ingredient for use
in cosmetics, among other claims. The court denied Access' Application, and the
parties each pursued claims in arbitration venued in London, pursuant to the
dispute resolution mechanism originally agreed between the parties.
ABT has contested Access's claims and believes it has fulfilled all aspects of
its contract with Access.
However, the dispute with Access has been a significant burden for ABT through
almost two years, and the legal costs of the case have been very high. Prior to
the settlement, ABT has incurred costs of about 20 MNOK related to the dispute.
As communicated in ABT's interim report for 2017, the costs related to the
dispute have adversely impacted ABT's financial results.
"I am pleased that we have reached a resolution of this matter. We believe the
settlement represents a correct solution for ABT and its owners, says CEO of
Aqua Bio Technology ASA, Arvid Lindberg."
"Now we are looking forward to focusing on ABT's potential, maximizing business
from our attractive distribution agreements and thereby creating value for our
owners," Lindberg says.
For further information, contact CEO of Aqua Bio Technology, Arvid Lindberg,
tel. +47 982 45 410.
Aqua Bio Technology (ABT) develops and commercializes sustainable biotechnology
for use in skin care products. ABT's cosmetic ingredients have high efficacy and
represent natural alternatives to traditional ingredients for the cosmetics
industry. ABT also markets and sells natural skin care products developed by
partners for consumers and professional users. Aqua Bio Technology is listed on
Oslo Axess.
Oslo, 2 February 2018
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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