Zefiro Founder Announces Partial Dismissal of New York Litigation and Comments on Annual Meeting Results

Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.TORONTO, March 27, 2026 (GLOBE NEWSWIRE) — Dr. Talal A. Debs, Founder of Zefiro Methane Corp. (Cboe: ZEFI) (“Zefiro” or the “Company”), is pleased to announce that his motion to dismiss of a New York civil case (the “NY Litigation”) brought by David McGrath against Dr. Debs, X Machina Capital Strategies Fund I GP LLC (“XMC”), and X Machina Capital Strategies LP (“XMST”) was granted in part. In a decision delivered March 19, 2026, a New York court dismissed multiple allegations included in the NY Litigation. Dr. Debs is confident he and XMC will prevail with respect to the remaining counts.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The NY Litigation was used by Zefiro’s board of directors (the “Board”) as a pretext for a frivolous investigation into Dr. Debs which was launched at considerable expense to shareholders. The Board then repeatedly cited the existence of the investigation to discredit Dr. Debs in his bid to elect a slate of directors at the Company’s annual general and special meeting of shareholders which was held on March 20, 2026 (the “Meeting”).Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Mr. McGrath worked with the Board to entrench the incumbent directors. He also sought unsuccessfully to block XMC’s ability to function and to prevent XMC from voting its Zefiro shares at the Meeting; these attempts were dismissed by a court and securities regulator, respectively.In separate litigation, Zefiro CEO Catherine Flax has filed a suit against XMC in which she makes additional false claims. Regrettably, the cynical nature of the McGrath and Flax actions has necessitated XMC filing suit against them in Florida for various matters, including tortious interference, civil conspiracy and defamation.Commentary on the future of Zefiro MethaneAs announced by the Company, Dr. Debs was unsuccessful in his efforts to elect directors to the Board at the Meeting. Dr. Debs respects the decision Zefiro shareholders made based on the information available to them. Through XMC and XMST, he remains a significant shareholder, and plans to hold the Board and management team to account on decisions affecting the Company.Dr. Debs commented: “I am grateful to have had the opportunity to contribute to Zefiro as its Founder, CEO and Chairman over the past several years. We have established a solid foundation upon which to build an environmental services leader with exciting growth prospects.“I believe the proxy campaign raised awareness of important issues in the areas of governance and transparency at Zefiro and will likely lead to improvements going forward. It also played a key role in an improved balance sheet and a higher share price and therefore expanded strategic options. These results have benefited all shareholders including XMC. Furthermore, XMC has retained its right to acquire additional shares representing up to 7.3% of the Company’s outstanding shares pursuant to the terms of the investor rights agreement between Zefiro and XMST. Zefiro remains a significant part of the XMC portfolio as we continue to invest in energy assets that contribute to a more sustainable future.”Cautionary note regarding forward-looking statements This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking statements”), concerning the Company and the intentions of Dr. Debs, XMC and XMST. Forward-looking information in this press release may include, without limitation, statements relating to plans with respect to Zefiro’s investment in Zefiro, the exercise of any pre-emptive rights to acquire additional Zefiro shares and holding management of Zefiro to account for Zefiro’s performance. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” “believes,” “projects” or variations of such words and phrases or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved.” Forward-looking statements are based on the opinions and estimates of Dr. Debs, XMC and XMST as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Although Dr. Debs, XMC and XMST have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Dr. Debs, XMC and XMST caution readers not to place undue reliance on forward-looking statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. Dr. Debs, XMC and XMST do not undertake to update any forward-looking statements except in accordance with applicable Canadian securities laws.For More Information:John VincicOakstrom AdvisorsE: john@oakstrom.comC: 647-402-6375Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.