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GUELPH, Ontario - Zentek Ltd. (TSXV:ZEN)(NASDAQ:ZTEK) said Wednesday that the Ontario Superior Court of Justice dismissed substantially all claims brought by the company’s founder and former CEO Aubrey Eveleigh, according to a press release statement.
The court issued its judgment on March 12, 2026, in the companion actions that arose after Eveleigh’s removal by shareholders at a special meeting on May 11, 2018. The original claims exceeded $6 million.
The court denied a success fee claim of $282,500, ruling that the pre-feasibility study required to trigger the payment was never commenced. Severance claims totaling $1,350,000 under the President’s Agreement and related Memorandum of Agreement were found void and unenforceable due to breaches of fiduciary duty.
The court also denied unpaid wages of $51,748.82, defamation damages of $75,000, and indemnification claims of approximately $194,000 in costs and disbursements. In the defamation claim, the court found the relevant statements were factually accurate.The legal victory comes as Zentek, with a market capitalization of $45.4 million, trades at $0.07 per share. The stock has surged 66.7% year-to-date despite remaining unprofitable over the last twelve months, according to InvestingPro data. The company reported revenue of $1.67 million with an impressive 74% growth rate in the last twelve months.
Regarding Zentek’s counterclaim for cancellation of 4.5 million founder shares and disgorgement of profits, the court determined the shares had been properly issued and found no basis to set aside the issuance.
The two companion actions were tried together before Justice Osborne of the Ontario Superior Court of Justice.
Zentek is a Canadian intellectual property development and commercialization company focused on graphene-enabled and advanced material technologies across clean air, next-generation materials, and critical minerals. The company’s core platforms include Albany Graphite, ZenGUARD, and Triera. InvestingPro assigns the company a "Fair" financial health score, with additional insights available to subscribers.
In other recent news, Zentek Ltd. has announced the commencement of a pilot evaluation program with Quality Filters Inc. This initiative aims to assess the integration of Zentek’s air filtration media technology into Quality’s commercial product lines. Additionally, Zentek is advancing its Albany Graphite Project by commissioning a new Preliminary Economic Assessment and initiating environmental baseline studies, moving toward a Pre-Feasibility Study. The company also received a 180-day extension from The Nasdaq Stock Market to meet the minimum $1.00 bid price requirement, extending the compliance deadline to August 24, 2026.
Zentek has outlined a strategic transformation focusing on capital discipline and its core platforms: Albany Graphite, ZenGUARD, and Triera. This strategic shift includes plans to derisk the Albany Graphite Project, which has achieved high purity levels suitable for nuclear applications. Furthermore, Zentek announced a strategic reset to concentrate on its three core platforms, implementing cost-cutting measures such as workforce reductions and facility optimization. The departure of Chief Science Officer Colin van der Kuur was also announced, with his duties being redistributed among existing leadership.
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