Natco Statement of Claim Struck Out by BC Supreme Court

PVT is involved in two litigation matters at present with Natco. Natco (NCII:OTC:BB) is a company listed on the Over The Counter Bulletin Board Exchange. PVT entered a Letter of Intent (LOI) which included various terms regarding funding and to negotiate a possible Reverse Take Over ("RTO"). The funding conditions of the LOI were not fulfilled, nor did the parties ever reach any consensus on the terms of a definitive RTO agreement. After numerous extensions, PVT claimed default and the LOI was terminated. A claim was filed by Natco against PVT and three other individuals related to PVT alleging breach of the LOI, damages due to the lost RTO, interference with Natcos business, the return of the funds loaned, among various other claims. During the negotiations with PVT, Natcos stock reached an all time high of $3.30 USD in April 2007, but since Natcos default, its shares have dropped significantly. In the past year it has traded as low as $0.14
USD and closed on November 7, 2008 at $0.33 USD.
PVTs position is that Natco failed to meet its commitments and deadlines despite PVT providing two extensions and the terms of the RTO were never agreed upon. Further, the funds Natco loaned to PVT were repayable in two years, thus PVT is not required to repay any funds until the Spring of 2009. In response, PVT sued Natco for the damages resulting from its failure to meet its obligations as PVT did not receive monies as promised. Natco has filed a defense denying liability and have issued a counterclaim.
PVT and the individual defendants made an application to strike Natco's claim. That application was heard and in a written decision, released on October 3, 2008, Madam Justice Griffin of the BC Supreme Court struck out Natco's statement of claim. Due to its improper pleadings, the Court has dismissed Natcos claims for loss of a bargain (loss of opportunity damages) and loss of share value. In its ruling, the court referred to Natco's pleadings as irrelevant and inadequate, confusing, sloppy, deficient,
unnecessary or embarrassing. Natco will now be required to re-file its statement of claim if it is to be heard by the courts.

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