CLARKSBURG., Maryland, March 07, 2024 (GLOBE NEWSWIRE) -- Reliability Incorporated OTC PINK (RLBY)
On December 29, 2023, the Circuit Court for Montgomery County, Maryland signed orders entering three (3) arbitration awards as judgments in Reliability's case against the Vivos Holdings, LLC and others (collectively, the "Vivos Group"). The Arbitrator had entered awards in August 2022, May 2023, June 2023, and October 2023, based upon contract and tort claims brought by Reliability and Reliability's wholly owned subsidiary, The Maslow Media Group ("MMG"), against the Vivos Group. The total amount of the judgments exceeds $7.7M. The arbitrator also appointed a rehabilitative receiver to collect Reliability's portion of the judgments.
These three arbitration Awards became final judgements on January 29, 2024. The judgments are good for 12 years and can be enrolled in other states. Thus, Reliability and MMG now, have final judgments which the appointed Receiver is now eligible to collect.
The Rehabilitative Receiver appointed by the Arbitrator is currently working on a plan to enable Reliability to collect the Awards.
As of December 31, 2023, the Vivos Debtor balance was approximately $5.5M, the legal fees awarded totaled another approximate $1.2M, and a specific fraud award provision in the merger agreement resulted in another $1M in stock awarded, resulting in the balance owed Reliability totaling approximately $7.7M.
The Receiver is empowered to recover the award by seizing shares of the company held by Dr. Naveen Doki and his affiliates, the Vivos Group.
During the receivership, Vivos Group shareholders shall not be entitled to vote any of their shares in Reliability at any annual or special meetings of the shareholders. The receivership shall terminate once the judgments in favor of Reliability are satisfied and, at that time, the restrictions on the rights of the Vivos Group shareholders imposed by the Award, shall be lifted.
"These legal proceedings have been a material distraction to the company over the last 4 years", said CEO Nick Tsahalis. "While this process took a significant amount of time, we are extremely pleased with the outcome, and we are eager to work with the Receiver to quickly enforce and collect the awarded judgements. Our sole focus moving forward is to grow our company both organically and through synergistic M&A activity."
As soon as Reliability is in a position to state definitively what actions are in the process of being taken and/or has an expected timeline for recovery of all or part of the awards, the company will release additional information.
Contact information:
Investor Relations - InvestorRelations@rlby.com
12124 Skylark Road, Clarksburg, MD 20871,
www.rlby.com
202-965-1100.
