Zentek announces judgement in long-standing litigation against founder

Zentek (ZTEK) announces that the Ontario Superior Court of Justice has issued its Reasons for Judgment dated March 12, 2026, in the companion actions Eveleigh et al. v. Zenyatta; Zentek v. Eveleigh et al., 2026 ONSC 1510. The litigation arose following the removal of Aubrey Eveleigh, the Company’s founder and former President and CEO, by shareholders at a special meeting held on May 11, 2018. The two companion actions were tried together before Justice Osborne of the Ontario Superior Court of Justice. The Court dismissed substantially all claims advanced by Mr. Eveleigh and his consulting firm, Eveleigh Geological Consulting Inc. Original claims, as filed, exceeded $6 million. At trial, the claims were refined and the Court denied all remaining monetary claims, specifically: A Success Fee claim of $282,500 – denied on the basis that the pre-feasibility study required to trigger the payment obligation was never commenced; Severance claims totaling $1,350,000 under the President’s Agreement and related Memorandum of Agreement – found to be void and unenforceable as a result of breaches of fiduciary duty; Unpaid wages of $51,748.82 – denied; Defamation damages of $75,000 – denied, with the Court finding the relevant statements were factually accurate; and Indemnification claims of approximately $194,000 in costs and disbursements – denied. With respect to Zentek’s claim for cancellation of 4.5 million founder shares and disgorgement of profits, the Court found that the shares had been properly issued and that there was no basis to set aside the issuance.