APP: Claim from Fusion fully settled


In May 2017, Fusion filed a fraud claim for USD 2.9 million 
against Apptix ASA related to a software license audit claim, 
plus an additional claim for USD 15.9 million in compensatory 

In the Share Purchase Agreement signed with Fusion, all 
representations and warranties made by Apptix ASA were 
discharged at the time of closing (November 2016). Under US 
law only a claim for fraud could be made post-closing.

Although the Company regarded the claim as speculative and 
totally unfounded, the claim was carefully reviewed by the 
Company and its legal advisors, and the Company's belief after 
such review was that the claim was tenuous and groundless.

Today, Apptix ASA has reached a settlement with Fusion whereby 
all claims against Apptix are withdrawn effective 
immediately.  While, both the Board and Apptix' legal advisors 
still believe any such claim is groundless, as long as Fusion 
upheld the claim it would impede any further strategic 
initiatives for Apptix.

The settlement consists of a cash payment to Fusion of USD 
150,000 and the return of 300,000 shares of Fusion stock, 
which based on Fusion's closing price (as of August 2), 
amounts to approximately USD 375,000. The aggregate settlement 
amount will be approximately USD 525,000. Additionally, Apptix 
incurred legal fees related to the case estimated at USD 
150,000. As part of the settlement, the delivery of the 
remaining 2,700,000 Fusion shares will be postponed from 
November 2017 to February 2018. The settlement structure 
includes a total release by Fusion of Apptix, so no further 
claims can be presented in the future. 

Of the total settlement costs, including legal fees, of 
approximately USD 675,000, Apptix' insurance company will 
reimburse approximately USD 400,000, resulting in a net 
settlement cost for Apptix of approximately USD 275,000. 
However, due to the reimbursement of by the Company's 
insurance provider, there will not be a negative cash impact 
on the company's cash reserves.

With this case now settled, the Board will regain and evaluate 
new strategic initiatives for Apptix ASA.

Asker, August 3, 2017

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