Quantum Blockchain Technologies Plc - Sipiem Appeal Judgement
(”QBT” or ”the Company”)
Sipiem Appeal Judgment
The Company announces that on
The Court of Appeal rejected all of the Sipiem defendants’ appeals with the exception of a minor claim. As a result, all damages awarded to CL17 as announced on
The Court confirmed the liability of the former directors and statutory auditors of Sipiem and also extended the finding of liability to the members of the internal audit committee, former directors and the main defendant’s family members whom the Court had, at a preliminary holding in the appeal, suspended enforcement of the lower court’s Judgment pending the appeal’s outcome. Finally, the Court accepted a withdrawal of an appeal by from one of the former Sipiem directors against her insurer.
As a result, the Company may now seek to fully enforce the Judgment against all of the defendants for an aggregate amount of €6,083,562 in damages (plus interest and adjustments for inflation to accrue from different dates until the date of satisfaction of the Judgment), plus €85,499 in legal expenses for the trial court action and €48,677 in legal expenses for the appeal (such latter expense to be satisfied by one of the defendants’ insurers). Other legal expenses were reciprocally compensated and €5,000 were assessed against all parties.
As previously disclosed in the Company’s announcements of 16 May and
Consequently, the agreement with the Sipiem Receiver (”Receiver”) for the purchase of the Receiver’s right on the 30% of any sum collected (net of legal fees) is no longer legally valid, as it was conditional on Court approval of the above Settlement. Hence, the Receiver will maintain its right to 30% of the damages recovered net of all connected costs borne by CL17 for the recovery, as per the original agreement of these terms between CL17 and the Receiver in 2019.
While the above matter is currently being assessed by the Company’s legal team, the Company still hold the above Settlement funds, minus the €170,000 paid to the Receiver for the 30% rights. In the meantime, all the parties involved, namely the Receiver, the Sipiem’s statutory auditor’s lawyers and the insurer’s lawyers are being contacted to discuss the contractual implications of the voided Settlement.
An update of the above negotiations in respect of the voided Settlement will be announced as soon as practicable.
As a final result:
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Sipiem’s statutory auditors have been ordered to pay the full amount of the Judgment upheld by the Court, i.e. €1,000,000 - which is part of the €6,083,562 - (plus interest and adjustments for inflation to accrue from different dates until the date of payment), instead of the agreed €700,000 under the resolved Settlement agreement announced by the Company on
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of
For further information please contact:
SP Angel Corporate Finance
(Nominated Adviser & Broker)
Leander
(Financial PR)
About
QBT (AIM: QBT) is an AIM listed investment company which has recently realigned its strategic focus to technology related investments, with special regard to Quantum computing, Blockchain, Cryptocurrencies and AI sectors. The Company has commenced an aggressive R&D and investment programme in the dynamic world of Blockchain Technology, which includes cryptocurrency mining and other advanced blockchain applications.
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