Electropure Settles

Electropure Inc. said Monday it has tentatively settled a $3-million default judgment rendered in June 1996 against the company, its HOH International Inc. unit and certain current and former executives and directors.

Electropure said that under the settlement it will issue 100,000 shares and 100,000 five-year warrants, exercisable at $1 a share, to the Economic Development Bank of Puerto Rico, the preferred shareholder in HOH International Inc. Electropure also will pay the bank $12,000 to cover certain costs and attorneys’ fees.

The lawsuit, filed by the Economic Bank, alleged that Electropure, its subsidiary and the officers and directors of both breached their fiduciary duty in entering into a distribution agreement with HOH/CNM2 Enterprises, which ultimately led to the dissolution of the subsidiary. Under the settlement, all defendants denied any liability or wrongdoing.