The suit relates to nondisclosure and a ‘standstill’ agreement signed by Corel and Vector Capital in March, whereby Vector is considering a takeover bid for Coral for $1.10 per share. Vector was initially given 30 days to conduct due diligence of Corel’s business operation; but this has now been extended to May 5 at Vector’s request. As part of this process, Corel’s board has engaged CIBC World Markets to identify and assess other strategic alternatives.
Officials at Ottawa-based Corel, which specializes in XML-based content creation tools and solutions, remained defiant about the complaint, saying that the suit, which was filed in the supreme court of the State of New York, has no merit and that it will defend itself to the hilt.
The suit comes on the back of a trying week for Corel, which earlier announced it will fight a Nasdaq delisting after its shares dipped below the minimum $1 share price requirement. Corel has been riding in and out of penny stock status over the past year, but has failed to top the $1 mark since December. The company also trades on the Toronto Stock Exchange.
Source: Computerwire
