News Column

ORYON TECHNOLOGIES, INC. FILES (8-K) Disclosing Other Events

February 13, 2014



Item 8.01 Other Events.

On February 6, 2014, M. Richard Marcus filed a lawsuit against Oryon Technologies, Inc. ("Oryon") and certain of its subsidiaries and directors, and EFL Tech B.V. ("EFL") and an affiliate, in the District Court for Dallas County, Texas, alleging a breach of fiduciary duty, inducement of fiduciary duty, minority shareholder oppression, breach of promissory note, and tortious interference with contract, in connection with the transaction between Oryon and EFL that is described in Oryon's Form 8-K Current Report filed with the Securities and Exchange Commission on January 27, 2014 (the "EFL Transaction").

In the lawsuit, the plaintiff seeks monetary damages, and a temporary restraining order, temporary injunction and permanent injunction against the defendants. Such injunctive relief would, inter alia, restrain the defendants from: (i) closing the second and third tranches (as required by the Subscription Agreement between the parties) pursuant to which EFL would contribute $500,000 to Oryon in exchange for shares that would increase EFL's ownership stake in Oryon to 75% of Oryon's fully diluted common stock, and allow EFL to nominate three additional directors to Oryon's Board of Directors; (ii) acting under the Subscription Agreement, License Agreement, Equipment Lease Agreement, or the Business Relationship Agreement that are part of the EFL Transaction; and (iii) dissipating the assets of Oryon.

At a hearing held on February 6, 2014, the Court denied the plaintiff's motion for a temporary restraining order, granted plaintiff's motion for expedited discovery, and set a hearing on February 14, 2014, for the plaintiff's motion for a temporary injunction.

In the lawsuit, the plaintiff alleges that Oryon breached a promissory note held by plaintiff, which accelerates the full amount of principal and interest of due thereunder, in the amount of approximately $68,000.


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Source: Edgar Glimpses


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