ALT5 Sigma Reaches Settlement With Wellington Peel Parties, Resolving Litigation And Contract Disputes For $200K And Share Issuances

On December 10, 2025, the ALT5 Sigma Corporation (the "Company") reached a settlement with Wellington Peel, LLC, Jean-Francois Amyot, Hugues Benoit and Prime Delta Corp. (the "WP Parties"), resolving the litigation previously disclosed by the Company in its Current Report on Form 8-K filed on November 5, 2025, which disclosed the commencement of an action in the Court of Chancery of the State of Delaware (the "Settlement"). As part of the Settlement, the WP Parties certified the destruction of (or returned, where feasible) all Company information previously accessed and in their possession, including any copies, and further certified that Company information, which includes such emails and files previously disclosed as being accessed without authorization and compromised in the Company's Current Report on Form 8-K filed November 5, 2025, had not been transferred, transmitted, or otherwise disclosed to any other person. The parties agreed to a mutual release of all claims and potential claims among them related to the matters previously disclosed on November 5, 2025, and the litigation previously commenced by the Company was withdrawn without prejudice.

 

Additionally, as part of the Settlement, Wellington Peel, LLC and the Company's Canadian subsidiary agreed to resolve a contractual dispute relating to a previously terminated consulting agreement. In consideration for that resolution, the parties agreed to a mutual release of all claims and potential claims between or among Wellington Peel, LLC and the Company and its Canadian subsidiary, and the Company agreed to pay Wellington Peel, LLC the total sum of $200,000, a portion of the amount claimed due under the relevant agreement, as follows: (1) $100,000 upon the execution of the Settlement and (2) $20,000 in five monthly installments commencing in February 2026, and to issue to Wellington Peel, LLC and its principal, Mr. Benoit, a total of 225,000 shares of the Company's common stock. The Company's Canadian subsidiary also agreed to resolve a dispute with a former employee affiliated with Wellington Peel, LLC regarding an unissued award of shares. In that resolution, the parties agreed to a mutual release of all claims and potential claims between or among the former employee and the Company and its Canadian subsidiary, and the Company agreed to issue to the former employee 50,000 shares of the Company's common stock.

 

The Settlement does not contain any admission of liability or wrongdoing by any party. The Company does not expect the Settlement to have a material impact on its financial condition, results of operations, or cash flows.