TORONTO, ONTARIO--(Marketwire - July 3, 2012) - AirIQ Inc. (TSX VENTURE:IQ) is pleased to announce the signing of a settlement agreement in connection with a product liability claim filed by a former customer in the District Court, East Central Judicial District in Fargo, North Dakota.
Pursuant to the settlement agreement, the parties agreed to release all claims against each other in consideration of the Company paying the former customer a total of US$97,500. Approximately one third of the settlement amount was covered by the Company's insurers, and the remaining amount payable by the Company is well within the amount provisioned on its books for settlement. Payment of the settlement amount will be made in installments with final payment to be made on November 15, 2012. Once all payments are made, the parties will file a stipulation for dismissal of the action, with prejudice. As security for the installment payments, the Company has granted a first security interest on its assets, which will be released immediately on final payment of the amount owing under the settlement.
"We are extremely pleased that this lawsuit against the Company has been settled. It represents the last of outstanding litigation against the Company since I took over as Chief Executive Officer", said Don Gibbs, President and Chief Executive Officer of AirIQ. "We are looking forward to being able to totally focus on building the business and achieving sustained growth and profitability", continued Mr. Gibbs.
AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of asset management services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.
This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.