AMERICAN BIODYNAMICS, INC. ANNOUNCES SETTLEMENT
AMERICAN BIODYNAMICS, INC. ANNOUNCES SETTLEMENT HOUSTON, Jan. 8 /PRNewswire/ -- American Biodynamics, Inc.,
(NASDAQ: BDYNF) today announced the settlement of all outstanding litigation matters with Weldon S. Guest, a former director of the company. Under the terms of the final settlement, Guest relinquished fully his claims regarding royalties purportedly due him under a royalty agreement and monies under a terminated employment agreement.
Concurrently, Guest and American Biodynamics entered into a non- compete agreement prohibiting him from competing with the company in the allograft tissue market for the length of the payment period. Further, he will not participate in the marketing or selling of any autotransfusion device for a period of one year. Additionally, Guest agreed to a stand still agreement prohibiting interference with the operations of the company or its management for the payment period. In return for these agreements, the company will pay Guest $352,500 over a three year period. If the company elects, it can pay $399,394 over a four year period. A total of $45,000 was paid against the amount owed at closing. John V. Hargiss, president, stated that, "The board and management of American Biodynamics are satisfied with this settlement, as it allows management to now devote full attention to the company's strategic goals and objectives. This settlement should not have a material adverse impact on the company, as management is confident that expected improvements in market share, sales and profits will offset this obligation." American Biodynamics offers surgical products which reduce or eliminate the risk of complications from donor tissue grafts and blood. The company is chartered in British Columbia, Canada, and has its executive offices in Houston. -0- /CONTACT: John V. Hargiss or Marti Bruce of American Biodynamics, 713-862-6622/ (BDYNF) CO: American Biodynamics Inc. ST: Texas IN: HEA SU: SM -- NY097 -- 7819 01/08/92 13:06 EST
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|Date:||Jan 8, 1992|
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