18 June 2024
Quantum Blockchain Technologies Plc
(”QBT”
or ”the Company”)
Sipiem Appeal Judgment
The
Company announces that on 10 June
2024, the Court of Appeal of Venice (the ”Court”) issued a judgment on the
appeals lodged by the defendants in Company subsidiary Clear
Leisure 2017 Ltd’s (”CL17”) lawsuit against the former directors
and statutory auditors of Sipiem in Liquidazione Srl (”Sipiem”) and
the related counterappeals filed by CL17.
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 1 November 2022
were upheld by the Court, with the sole exception being the
reduction of liability for one of the former directors by an amount
of €105,412, reducing the total damage award to c.€6.1m, (the
”Judgment”).
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
4 June 2024, a settlement agreement
of €700,000, with certain defendants and their professional insurer
(the “Settlement”), was subject to the scheduling, by the
Venice Court, of a hearing to
approve the Settlement, before the issue of the appeal ruling. The
appeal ruling has however been issued prior to the scheduling of
the hearing, and therefore, the €700,000 settlement agreement shall
now be deemed void.
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:
-
The
Venice Court of Appeal confirmed
the ruling of the 1 November 2022
lower court Judgment in favour of CL17 (save for €105,412),
amounting to €6,083,562 (plus interest and adjustments for
inflation) in damages, plus €134,166 for legal expenses.
-
The
Venice Court of Appeal, by ruling,
also removed any opposition to the enforceability, by CL17, of the
above amounts against all defendants.
-
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 16 May
2024.
Francesco Gardin, Executive Chairman
of QBT, commented: ”We
are extremely pleased with the Venice Court of Appeal result, which confirms
previous ruling while extending the scope of its enforceability.
QBT subsidiary CL17 will now focus on the collection of the €6.083m
plus interest and adjustments for inflation. CL17 has also been
awarded €134,166 for legal expenses. The Company will ensure that
CL17 proceeds with maximum effort to seek and collect the funds
from the defendants.”
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For
further information please contact:
Quantum Blockchain Technologies Plc
Francesco Gardin, CEO and Executive Chairman +39 335
296573
SP Angel Corporate Finance (Nominated
Adviser & Broker)
Jeff Keating +44 (0)20 3470 0470
Kasia Brzozowska
Leander (Financial
PR)
Christian Taylor-Wilkinson +44 (0) 7795 168 157
About Quantum Blockchain Technologies Plc
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.