Australian medical aesthetic clinics operator Total Face Group Ltd. is facing legal proceedings in the Supreme Court of Queensland in relation to a dispute surrounding the calculation of post-completion payments under the sale and purchase agreements of its COZmedics business, according to a Dec. 19 announcement.
Alison Jamieson, along with other vendor entities she controls, and former COZmedics Managing Director Peter Ryan claim that Total Face Group breached the sale agreements it entered on June 20, 2016 by miscalculating post-completion payments due to the vendors on Aug. 28.
The company allegedly owes the plaintiffs A$616,268 in cash and $616,268 in shares due to the miscalculation. Total Face Group acknowledged that it owed the vendors a post-completion payment but said the amount given is "materially overstated" and that it will "vigorously defend the proceedings."
In the same release, the company confirmed it is in talks with a number of financial parties in relation to the strategic review announced Aug. 31.
According to the announcement, Total Face Group's board of directors had been disappointed with the company's lower than expected earnings across its network in fiscal 2017, driven largely by the earnings shortfall in the CoolSculpting offering. The company said its board believes an independent external review is needed to implement measures to realize shareholder value.