Chemtrade Announces Successful Court Decision on $25 Million Reverse Break Fee Lawsuit
TORONTO, Ontario, December 22, 2022 – Chemtrade Logistics Income Fund (TSX: CHE.UN) today announced that Madame Justice Price of the Court of King’s Bench of Alberta ruled in favour of Chemtrade in its lawsuit against Superior Plus Corporation (“Superior”) (Chemtrade Electrochem Inc. v. Superior Plus Corp., filed July 5, 2016).
The lawsuit involved the failed attempt by Superior to acquire Canexus, prior to Chemtrade’s 2017 acquisition of Canexus. The Arrangement Agreement between Superior and Canexus contained a clause requiring Superior to pay $25 million if the acquisition did not close due to a failure to obtain Canadian and U.S. competition and anti-trust regulatory approvals. The Court’s ruling is subject to appeal for a period of 30 days.
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is also the largest producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as “anticipate”, “continue”, “estimate”, “expect”, “expected”, “intend”, “may”, “will”, “project”, “plan”, “should”, “believe” and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: Chemtrade’s ability to collect the proceeds of litigation, its use of such proceeds and whether the lawsuit will be appealed. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the “RISK FACTORS” section of the Fund’s latest Annual Information Form and the “RISKS AND UNCERTAINTIES” section of the Fund’s most recent Management’s Discussion & Analysis.
Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon.
Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
* * * *
For further information:
Chief Financial Officer
Tel: (416) 496-4177
Business Development Manager
Tel: (973) 515-1831