REG-Quantum Blockchain Technologies Plc: Sipiem Appeal Judgement

Quantum Blockchain TechnologiesAnnouncement

18/06/2024 07:15

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.

 

 

 



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