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First Global Data (TSXV:FGD) announces that it was recently served with an application by Fountain Asset. The application has been commenced in the Ontario Superior Court of Justice. As quoted in the press release: In the application, Fountain is seeking an order that the Company deliver to Fountain options to subscribe for and purchase 3,375,000 …
First Global Data (TSXV:FGD) announces that it was recently served with an application by Fountain Asset. The application has been commenced in the Ontario Superior Court of Justice.
As quoted in the press release:
In the application, Fountain is seeking an order that the Company deliver to Fountain options to subscribe for and purchase 3,375,000 common shares of the Company at $0.10 per share pursuant to the terms of a Financial Advisor Agreement dated August 29, 2015. The Company maintains that Fountain is not eligible to receive these options for a variety of reasons. Fountain is also seeking a declaration that Fountain is entitled to subscribe for and purchase 3,500,000 common shares of the Company at $0.11 per share pursuant to a warrant certificate, dated August 31, 2015. First Global maintains that Fountain is not eligible to exercise the warrants.
The Company further notes, as it would like to ensure that its shareholders understand, that Fountain played an active role in forcing the Company to release 26 million common shares in 2015 in what was supposedly an unrelated transaction. The Company has noted in the past and is currently considering appropriate avenues of recourse in order to recover these shares.