Key points:
- Quantum Blockchain (QBT) shares surged 23.2% on the Venice court award.
- The shares later fell due to the minimal chances of collecting the amount.
- Investors were relieved that the seven-year case was finally over.
The Quantum Blockchain Technologies PLC (LON: QBT) share price surged 23.2% after a Venice court ruled in the company’s favour in a suit brought by its wholly-owned subsidiary Clear Leisure 2017 against the previous management team and the internal audit committee of Sipiem in Liquidazione S.r.l (Sipiem), which went bankrupt in August 2022.
The court ordered Sipiem and the former Clear Leisure directors to pay the firm €6,188,974 (plus interest and adjustments for inflation), which will accrue until the payment date. In addition, the defendants (SIpiem) will also pay Clear Leisure €85,499 in legal expenses, with the ruling being immediately enforceable.
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However, there is no guarantee that Clear Leisure shall be paid the entire amount awarded by the court, given that Sipiem was declared bankrupt earlier this year. QBT also noted that only one insurer was mentioned in the claim and is liable to cover a maximum liability of €450,000.
CL17 will assess the defendants’ assets to seize some of them and auction them to recover the funds owed due to today’s court award. But, again, there are no guarantees that the company shall secure such assets and dispose of them to recover the amount owed.
Quantum blockchain further reminded investors that it acquired the claim for €50,000 plus 30% of any funds recovered by CL17 from the defendants, minus legal and other expenses incurred by CL17 during the litigation and applicable taxes.
Investors were relieved that the legal battle had finally ended in CL17’s favour after seven years but was disappointed to learn that the firm might not collect the entire amount awarded.
Francesco Gardin, QBT’s Chairman and CEO, commented: “This court ruling is the result of seven years of legal procedures, where the Company has continued to act with meticulous discipline and determination while working closely with its exceptional legal and accounting teams. While the process has taken a long time to reach this point, we are very pleased to have finally attained this outcome. We will now apply the same very determined and scrupulous approach to the collection of the sums due from the defendants.”
The Quantum Blockchain (QBT) share price.
*This is not investment advice.
The Quantum Blockchain share price surged 23.19% to trade at 1.70p, rising from Monday’s closing price of 1.38p.