Braxia Scientific Reaches Agreements to Settle Class Actions in the United States and Canada
Agreements subject to court approval
TORONTO, April 13, 2022 /CNW/ – Braxia Scientific Corp. (“Braxia Scientific” or the “Company”), (CSE: BRAX) (OTC: BRAXF) (FWB: 4960) today announced that it has reached an agreement in principle (“the US Settlement Agreement”) for settle claims alleged in a securities class action (“U.S. Class Action”) pending against the Company and certain of its former officers filed in United States District Court of the Central District of California in April 2021. The Company also announced that it has entered into a settlement agreement (the “Canadian Settlement”) to resolve a class action (“Canadian Class Action”) that has been filed in the Supreme Court of British Columbia in May 2021 against the Company its CEO, certain of its former officers, a shareholder and underwriters.
The U.S. Settlement contemplates a cash payment by the Company of USD $1 million to settle the US class action lawsuit. Canadian Settlement Considers CDN Cash Payment $1.9 millionof which the Company will pay CDN $1.6 million.
After available insurance, the total cost to the Company to settle the two class actions will be approximately CDN $1.36 million. This does not include legal fees incurred by the Company, estimated at approximately CDN $950,000of which approximately CDN $750,000 had been paid.
Both the U.S. settlement and the Canadian settlement are subject to court approval in hearings scheduled for later in 2022. Under the respective settlement agreement, once the U.S. settlement and the Canadian settlement receive approval Court approval, both class actions will be dismissed against all defendants, including the Company and its officers. Approval by the respective courts, notice to putative classes, and satisfaction of customary conditions of effectiveness will take several months.
As previously indicated, given the uncertainties associated with litigation, the Company had not been able to assess the likelihood of a potential loss or an adverse effect on its financial position or to reasonably estimate the amount of the potential class action loss. Following the conclusion of the U.S. settlement and the Canadian settlement, the Company expects the total settlement cost noted above to be incorporated into its results of operations and financial position for the fiscal quarter ending June 30, 2022.
Director’s resignation
The Company announces that David Greenberg resigned as a director. The Company appreciates David’s significant contribution to the Company and wishes him well in his future endeavours.
About Braxia Scientific Corp.
Braxia Scientific is a medical research company with clinics that provide innovative ketamine-based treatments for people with depression and related disorders. Through its medical solutions, Braxia aims to reduce the disease burden of brain disorders, such as major depressive disorder, among others. Braxia is primarily focused on (i) owning and operating multidisciplinary clinics, providing treatment for mental health disorders, and (ii) research activities related to the discovery and commercialization of new drugs and methods. administration. Braxia seeks to develop ketamine and derivatives and other psychedelic products from its IP development platform. Through its wholly-owned subsidiary, the Canadian Rapid Treatment Center of Excellence Inc., Braxia currently operates multidisciplinary community clinics offering fast-acting treatments for depression located in Mississauga, Toronto, Ottawaand Montreal.
ON BEHALF OF COUNCIL
“dr. Roger S. McIntyre“
dr. Roger S. McIntyre
CEO
The CSE has not reviewed and accepts no responsibility for the accuracy or adequacy of this release.
Forward-looking information Disclaimer
This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, future estimates, plans, programs, forecasts, projections, goals, assumptions, expectations or beliefs about future performance are “forward-looking statements”.
Forward-looking statements include statements about the expected promise of ketamine-based treatments for depression and the potential of ketamine to treat other emerging psychiatric disorders, such as bipolar depression. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. These risks and uncertainties include, among others, the inability of ketamine, psilocybin, and other psychedelics to provide expected health benefits and unanticipated side effects, dependence on obtaining and maintaining regulatory approvals , including acquiring and renewing federal, state, municipal, local or other licenses and engaging in activities that may subsequently be deemed illegal under national or international law. Ketamine and psilocybin are currently Schedule I and Schedule III controlled substances, respectively, under the Controlled Drugs and Substances Act, SC 1996, c. 19 (the “CDSA”) and possession of such substances under the CDSA without a prescription or legal exemption is a criminal offence. Health Canada has not approved psilocybin as a drug for any indication, but ketamine is a legally authorized drug for the treatment of certain psychological conditions. It is illegal to possess such substances in Canada without prescription.
These factors should be carefully considered and readers are cautioned not to place undue reliance on these forward-looking statements.
Although the Company has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other risk factors that cause the actions, events or results differ from those anticipated, estimated or expected. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, including the amended and restated registration statement dated April 15, 2021, which are available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in the forward-looking statements.
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SOURCE Braxia Scientific Corp.
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