PROTECH HOME MEDICAL OBTAINS DEFAULT JUDGMENT AGAINST FRAUDSTER
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
Cincinnati, Ohio – June 26, 2019 – Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV: PTQ), a healthcare services company with operations in the United States, is pleased to report an update related to the cyberscam breach that the Company previously disclosed in a press release dated May 6, 2019. Protech is delighted to report that it has obtained default judgment against the perpetrator of its previously announced cyberscam.
As a result of the proficient work and swift response of Company management and its global legal advisors, DLA Piper, the Company has successfully applied to the Hong Kong Court to freeze the perpetrator’s bank account in Hong Kong which contained approximately CAD$8.6 million of the CAD$9.2 million that was stolen. Earlier today, the Company obtained default judgment against the perpetrator, which is the first step in commencing enforcement and garnishee proceedings. It is expected that the bank will release the CAD$8.6 million to the Company as the Judgment Creditor upon receipt of a final Garnishee Order Absolute from the Court in Hong Kong. Garnishee proceedings are expected to take several months.
As a result of the Company’s investigations, it is understood that the balance of the stolen funds, namely, approximately CAD$608,000, was transferred by the perpetrator to a bank account of another party in mainland China. The Company continues to work with its advisors to report, trace and recover these funds, but are faced with a more challenging environment in mainland China.
“I am deeply gratified by the swift and effective response of our legal counsel, board of directors and executive team in this matter. We are very pleased with the latest developments as it relates to potentially recovering the money that was stolen from the Company and look forward to press releasing further news as it becomes available. Protech continued to operate at a high level of service throughout this crisis and we look forward to the full resumption of our growth by acquisition strategy. We thank all of our investors for supporting the Company in dealing with this unfortunate situation” said Greg Crawford, the Company’s CEO and Chairman.
While the Company is actively and aggressively taking all measures to recover the funds, there can be no assurance that one or more measures, including the garnishee proceedings, will result, or successfully conclude in a timely manner or at all. Additional information will be released by the Company as it becomes available.