Court rejects $6M claims against Zentek (NASDAQ: ZTEK) in Ontario ruling
Rhea-AI Filing Summary
Zentek Ltd. reports a favorable court outcome in long‑standing litigation with its former CEO and his consulting firm. The Ontario Superior Court dismissed substantially all claims, which originally exceeded $6 million, including success fee, severance, unpaid wages, defamation, and indemnification demands.
The Court denied a $282,500 success fee claim, $1,350,000 in severance claims, $51,748.82 in alleged unpaid wages, $75,000 in defamation damages, and about $194,000 in indemnification costs. Zentek’s own claim to cancel 4.5 million founder shares and recover related profits was not granted, as the shares were found to be properly issued.
The company’s CEO framed the judgment as closing a difficult chapter and emphasized focusing on core platforms Albany Graphite, ZenGUARD™ and Triera as Zentek continues to develop and commercialize graphene‑enabled and advanced material technologies.
Positive
- Ontario court dismisses major claims: The Ontario Superior Court denied substantially all claims originally exceeding $6 million against Zentek, eliminating a large potential financial and operational overhang from long‑running litigation.
Negative
- None.
Insights
Ontario court dismisses over $6M in claims, easing Zentek’s litigation overhang.
The Ontario Superior Court dismissed substantially all monetary claims brought by the former CEO and his consulting firm, including items that originally totaled more than $6 million. This removes a sizable potential liability that had been hanging over Zentek for years.
The Court rejected success fee, severance, unpaid wage, defamation, and indemnification claims, while also finding the founder shares at issue were properly issued and not subject to cancellation. Economically, the net result is strongly favorable for Zentek, as no damages were awarded against the company.
With this judgment, Zentek can redirect management attention and resources toward its core platforms—Albany Graphite, ZenGUARD™ and Triera. Future disclosures about commercialization progress on these technologies will shape how meaningful this legal clean‑up is for the company’s longer‑term value.
FAQ
What was the outcome of Zentek (ZTEK)'s long-standing litigation in Ontario?
Which specific monetary claims were denied in the Zentek litigation judgment?
Why is the Zentek (ZTEK) litigation decision considered favorable for the company?
What did Zentek's CEO say about the impact of the litigation judgment?
What business areas is Zentek focusing on after resolving this litigation?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2026
Commission File Number: 001-41310
ZENTEK LTD.
(Registrant)
24 Corporate Court
Guelph, Ontario N1G 5G5 Canada
(Address of Principal Executive Offices)
Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ZENTEK LTD. | ||
| (Registrant) | ||
| Date: March 13, 2026 | By | /s/ Wendy Ford |
| Wendy Ford | ||
| Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibit | Description of Exhibit |
| 99.1 | Press Release dated March 13, 2026 – Zentek Ltd. Receives Favorable Judgement in Long-Standing Litigation |
Zentek Ltd. Receives Favorable Judgment in Long-Standing Litigation
Ontario Superior Court Dismisses Claims Originally
Exceeding $6 Million Against Zentek
Guelph, Ontario, March 13, 2026 - Zentek Ltd. (TSX-V: ZEN) (NASDAQ: ZTEK) ("Zentek" or the "Company") announces that the Ontario Superior Court of Justice (Commercial List) 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.
Background
The litigation arose following the removal of Aubrey Eveleigh, the Company's founder and former President and Chief Executive Officer, 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.
Outcome
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.
CEO Comment
"This judgment closes a chapter that has been part of Zentek's history since before I arrived on December 1," said Moe Jiwan, CEO of Zentek. "The Court's decision speaks for itself. What matters now is execution - on Albany, on ZenGUARD™, on Triera, and on building the foundation this company deserves. We move forward."
About Zentek
Zentek Ltd. is a Canadian intellectual property development and commercialization company advancing a portfolio of graphene-enabled and advanced material technologies across clean air, next-generation materials, and critical minerals. The Company's core platforms are Albany Graphite, ZenGUARD™, and Triera.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and estimates that management considers reasonable at the time they are made, but which may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. Zentek undertakes no obligation to update forward-looking statements except as required by applicable law. Additional information about Zentek and its business activities is available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
For further information:
Mohammed (Moe) Jiwan
Chief Executive Officer, Zentek Ltd.
T: 416-709-8876
E: mjiwan2@zentek.com
W: www.zentek.com