(15) CONTINGENCIES
Litigation
In November, 2008 Molecular Securities, Inc. ("Molecular")
filed a Complaint against TyraTech, Inc. ("Company") asserting
claims for breach of contract. Molecular alleged that it
was owed US$2,760,470 for services it allegedly provided to
TyraTech plus interest, attorneys' fees, and costs. On October
20, 2011 the State Supreme Court of Appeals (the highest
court in New York) issued a decision denying Molecular
Securities, Inc. ("Molecular") request to appeal the May 26,
2011 ruling by the New York Supreme Court, Appelate Division
of New York County, in favor of TyraTech and against Molecular
which dismissed Molecular's complaint in its entirety. As a
result, no further appeals by Molecular are available in New
York State. The Company believes the Court of Appeals ruling
will bring to an end to any further litigation against TyraTech in
a case which TyraTech strongly defended itself while refuting
all claims throughout the proceedings.
(16) SUBSEQUENT EVENTS
On February 29, 2012 the Company issued 52,101,460 of new
common shares of US$0.001 each for a gross cash consideration
of £2.6 million (US$4.1 million) representing £2.4 million
(US$3.8 million) net of cash expenses. A further 600,000 shares
of US$0.001 each were issued in settlement of other expenses
of £30,000 (US$47,544). Certain subscribers of these shares
constituted related parties for the purposes of the AIM Rules;
those subscribers being, Mr. Alan Reade, Mr. Barry Riley and
Mr. James Hills, all directors of the Company, subscribing for
1,933,960, 1,000,000, and 315,500 respectively. Additionally,
SAM Sustainable Asset Management, a substantial shareholder
subscribed for a total of 8,000,000 shares.
TYRATECH, INC. • ANNUAL REPORT 2011 • PAGE 45
