Business
Fountain Asset Corp. Announces Receipt of Court Action
Toronto, Ontario--(Newsfile Corp. - September 14, 2017) - Fountain Asset Corp. (TSXV: FA) (" F...
About this update from Fountain Asset Corp.
[{"type":"text","content":"Fountain Asset Corp. Announces Receipt of Court ActionToronto, Ontario--(Newsfile Corp. - September 14, 2017) - Fountain Asset Corp. (TSXV: FA) (\"Fountain\" or the \"Company\") announces today that it has been served with a statement of claim by First Global Data Limited (\"FGD\"). The claim seeks damages of $20,000,000 against a number of defendants including Fountain and its Chief Executive Officer, alleging breach of contract, conspiracy and various other causes of action (the \"FGD Action\"). Fountain believes the claim against Fountain and its CEO is entirely without merit and frivolous, and has been commenced in an attempt to delay the outcome of Fountain's claims against FGD in existing proceedings commenced by Fountain on February 3, 2017 (Ontario Superior Court of Justice Court File No. CV-17-569015, the \"Application\"). Fountain commenced the Application because FGD has refused to honour its contractual obligations to issue certain options and warrants to Fountain. Specifically, on August 29, 2015, FGD executed a Fiscal Advisory Agreement Amendment entitling Fountain to options to subscribe for and purchase 3,375,000 common shares of FGD at $0.10 per share (the \"Options\"); and on August 31, 2015 FGD executed a warrant certificate entitling Fountain to subscribe for and purchase 3,500,000 common shares of FGD at $0.11 per share (the \"Warrants\"). Fountain attempted to exercise the Options and Warrants in the fall of 2016. FGD has refused to honour the Options and Warrants without justification.As a result of an August 24, 2017 order of the Ontario Superior Court of Justice, Fountain's Application will be pursued as a counterclaim in the FGD Action. Fountain will vigorously defend the FGD Action, and will vigorously prosecute its claims against FGD. Specifically, Fountain will seek damages of at least $6,015,000 equal to the difference between the purchase price per share under the Options/Warrants, and the highest trading value to date, as well as punitive and exemplary damages of $2,000,000.Forward-Looking StatementsCertain information contained in this press release constitutes forward-looking information, which is information relating to possible events, conditions or results of operations of the Company, which are based on assumptions about future economic conditions and courses of action and which are inherent...