Vancouver-based investment firm Mercury Partners & Company has sold its large holding shares in technology firm VisuaLABS and has dropped its proxy battle against the company.
“This is a very positive news for VisuaLABS and its shareholders,” said VisuaLABS president John Kendall in a released statement.
“We can now concentrate on moving forward with the new board of directors and bringing to the shareholders a new business plan to create value for them.”
Mercury had owned about 13 per cent of VisuaLABS, and was fighting to put a $1.7-million deal with Sheldon Zelitt and wife Joy before disinterested shareholders.
Under the agreement, the Zelitts gave back roughly 6.7 million of their VisuaLABS shares to the company in exchange for keeping a $1.5-million property outside Prague, in the Czech Republic.
Joy Zelitt also received just over $200,000 in severance pay and a one-time, out-of-country living expense.
The B.C. Securities Commission recently dismissed an application by Mercury to freeze the settlement. Mercury managing director Tom Kusumoto has said shareholders are outraged over how Zelitt allegedly misled everyone with tales of his 3-D television technology, but still managed to walk away with a sweetheart deal.
But Kendall has said if VisuaLABS fought a lengthy court battle to try to force the couple to hand back the 6.7 million shares it eventually won back, the company would be in far worse financial shape.
Sheldon Zelitt is still awaiting a trial this November on 11 counts of misrepresentation under the Alberta Securities Act.
