DigitalX confirms finalization of legal proceedings in ICO case
The proceedings stemmed from a claim filed by a group of parties relating to an investment made by those parties in an initial coin offering to which DigitalX was an advisor.
Blockchain-based solutions provider and ICO adviser DigitalX Ltd (ASX:DCC) has earlier today announced that it has finalised the legal proceedings, which related to an Originating Application and Statement of Claim filed by a group of parties relating to an investment made by those parties in an initial coin offering (ICO) to which the company was an advisor.
The Claim, as announced in September 2018, was for a combined amount of approximately US$1,833,077 plus damages. DigitalX has denied any and all wrongdoing.
The company said today it entered into a settlement deed on May 7, 2019 to provide full release from the applicant’s claims without any admission of liability by DigitalX. Further, DigitalX has released the parties from any and all claims.
DigitalX advises it will be making a cash payment of AU$250,000 within 2 business days and a further cash payment of AU$150,000 plus interest on July 1, 2019. The cash payments will be made out of the company’s existing cash reserves.
DigitalX also says it will issue shares for a total value of AU$350,000 under its existing Listing Rule 7.1 placement capacity in up to three tranches by no later than the date that is 6 weeks after the date of the settlement deed. The issue price of the shares will be the 5-day VWAP of the Company’s shares prior to the date of issue. The applicants to the Claim will also transfer all issued OMX tokens to the Company within 2 business days.
The company plans to pursue contractual indemnities with third parties for partial recovery of the settlement funds and will pursue that avenue for shareholders.