Three things worth noting from the announcement below:

1. Announcement was made 19th November, so almost a full month after Beam went into Trading Halt on 22nd October. While they don't have timely disclosure obligations like Beam, this highlights that they clearly just wanted to play games with their Comms, as Beam had already announced this widely and those in the industry would have already been aware.

2. RP indicate that there is a negotiation on fair market value before the arbitrator is required to step in and provide an independent valuation. Given their approach to date and their language below, clearly the negotiation was never going to be worth anyone's time, so hoping they just proceeded straight to the independent valuation, although by this point, a month had already been burnt. It is a disgrace that it is taking this long to sort out.

3. RP's contention that the device IP (and other related IP like the API's Beam developed) should be rolled in at no additional cost (highlighted below) is dishonest, laughable and embarrassing. And the fact that they've had to call it out specifically basically proves the point that they don't own it and they know that. If I was Beam, I would be starting by valuing the device (and API) IP based on development costs, combined with a traditional valuation based on the sales of the devices to date and what could be made through the future use of this IP in future devices.

Anyone who Googles Roadpost in the future will quickly find all the history of this JV and how RP have screwed over Beam massively, which in turn, should be the biggest warning sign that anyone doing business with RP will likely end up in a worse position than they started.

Roadpost Inc. Prevails in Arbitration Against Beam Communications Pty Ltd.

TORONTO, Nov. 19, 2024 (GLOBE NEWSWIRE) – Roadpost Inc. is pleased to announce that the arbitrator in its case against Beam Communications Pty Ltd. has rendered a decision in its favour, finding Beam in material breach of the 50/50 ZOLEO Inc. joint venture agreement between the two companies.

The arbitration decision is final and binding, compelling Beam to sell its joint venture share in ZOLEO Inc. to Roadpost at fair market value. Should the parties be unable to agree on fair market value, it will be determined by an independent professional valuator. The purchase price will be paid 25% at closing with the balance due in three equal annual payments.

Roadpost is confident that ZOLEO device supply will continue without interruption during this process. The joint venture agreement and related documents clearly define the mechanisms, including price, through which all necessary IP for manufacturing and operations will be acquired by ZOLEO Inc. pursuant to Beam's share sale. It is Roadpost's view that the device IP must be rolled up at no additional cost to ZOLEO or Roadpost.

“I am grateful for the outcome of the arbitration proceedings and see it as a reaffirmation of Roadpost's unwavering commitment to the future success of ZOLEO,” says Morris Shawn, President of both Roadpost and ZOLEO. “ While continuing to vigorously defend against any violation of contractual terms and enforcing Roadpost's other legal rights, we remain focused on continuing to provide innovative solutions and delivering value to our customers and partners. We look forward to working with Beam on a smooth and speedy transition of their ZOLEO ownership stake.”

https://www.roadpost.ca/roadpost-inc-prevails-in-arbitration-against-beam-communications-pty-ltd