LifeVantage pays Zrii $400,000 to settle litigation

Dec 19 2009

LifeVantage Corporation (OTC Bulletin Board: LFVN), the maker of Protandim® and TrueScience(TM) Anti-Aging Cream, science-based solutions to oxidative stress, announced today that the Company has entered into a settlement agreement with, among other parties, Zrii, LLC. Under the terms of this agreement, LifeVantage paid $400,000 to Zrii, and Zrii and its founder, William Farley, on the one hand, and the Company and many individuals and entities associated with the Company, on the other hand, agreed to mutual releases of claims. The settlement agreement also includes the parties' agreement to dismiss, with prejudice, litigation pending in California, Delaware and Utah that was instituted by Zrii early in 2009. LifeVantage is a party only to the California litigation, which will be dismissed, with prejudice, no later than 30 days after Zrii's receipt of the $400,000 payment. The Company is not a party to the Delaware or Utah litigation.

LifeVantage also announced that it has raised to date an aggregate of $1,122,143 in a financing in which the Company sold to accredited investors 8% convertible debentures in an aggregate principal amount of $1,121,020 and warrants to purchase shares of the Company's common stock. The debentures are convertible into shares of the Company's common stock at any time at the discretion of the holder at a conversion price per share of $0.20. The warrants are exercisable at any time at the discretion of the holder at an exercise price of $0.50 per share.