Medis Technologies issues shares to settle litigation with Volation

By Devika Patel

Knoxville, Tenn., Oct. 14 - Medis Technologies Ltd. entered a settlement agreement with investor Volation Capital Partners, LLC on Friday, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

On Sept. 16, the filing said, Medis sold a convertible promissory note and warrants to a non-affiliated investor. Subsequently, Volation informed Medis that this issuance violated the terms of its agreement with Medis.

On Thursday, Volation served Medis with a lawsuit in Los Angeles Superior Court alleging breach of contract. The dispute was settled on Friday.

In the settlement agreement, Volation agreed to dismiss the lawsuit in exchange for 1,232,541 Medis common shares. The presiding judge approved the settlement, and it became binding. The shares were issued on Monday.

The company said in September that its planned $5 million private placement of series B preferred shares with Volation had been terminated. The deal priced on June 8. The company said at that time that it did not plan to conduct any further business with Volation.

Medis Technologies is a New York-based maker of fuel cell batteries used in consumer and military electronics.

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