Toronto, 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.
Certain 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 inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information in this press release includes, but is not limited to, statements with respect to the Company's action against FGD, including the timing and success thereof, and statements regarding FGD's ability to successfully prosecute its claim against the Company. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Some of the risks and other factors which could cause results to differ materially from those expressed in forward-looking information contained in this press release include, but are not limited to: the ability of the Company to successfully defend the FGD Action; the Company being successful in its counterclaim; and other risks and factors discussed in the Company's May 1, 2017 MD&A. The forward-looking information contained in this press release is provided as at the date of this press release, based upon the opinions and estimates of management and information available to management as at the date of this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information contained in this press release.
About Fountain Asset Corp.
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