WESTLAKE VILLAGE, Calif., Oct. 14, 2020 /PRNewswire/ -- On September 14, 2020, Arbitrator Richard D. Aldrich, in the matter of M&A Capital, LLC ("M&A Capital") versus Bellami Hair, LLC ("Bellami Hair") found that M&A Capital was not entitled to a fee related to Cathexis' minority investment and the $100 million capital commitment as Bellami's November 16, 2018 press release was false: https://www.prnewswire.com/news-releases/luxury-beauty-brand-bellami-hair-receives-minority-investment-and-100-million-capital-commitment-from-cathexis-holdings-llp-300751837.html
The Arbitrator found that "Cathexis did not make the $20 million investment or a $100 million capital commitment at the time the press release was published."
The Arbitrator found that "the press release contains misrepresentations that were never publicly retracted. The press release falsely reported Bellami's business relationship with Cathexis as it existed in November 2018."
On January 31, 2020, Bellami's CEO Julius Salerno declared under oath that for months after the press release, including through, at least February 3, 2019, the end of M&A Capital's contractual obligation:
"Bellami and Cathexis did not enter into any memorandum of understanding, letter of intent or other agreement of any kind related to any such $20 million investment or $100 million capital commitment. Although Cathexis and Bellami discussed a potential future capital commitment during negotiations of the Cathexis Note [$2 million], no specific terms or investment parameters were established as to this future capital commitment."
Both Bellami Hair and Cathexis Holdings testified under oath that no written communications (zero emails or texts) existed between Bellami Hair and Cathexis Holdings related to the $100 million capital commitment during M&A Capital's contract. During the entirety of the Arbitration process, which lasted 22-months through September 14, 2020, not one written document for the $100 million capital commitment was ever presented other than the false press release.
Contact: Nicole Grolman, [email protected]
SOURCE M&A Capital