Sanwire Seeks Legal Action Against Intercept Music and Trillium
Sanwire Pursues Legal Action
Sanwire Corporation, a company dedicated to integrating diverse technologies across various sectors, has initiated a legal complaint against Intercept Music and Trillium Partners LP. This move comes as a significant development in its ongoing efforts to reclaim shares and seek compensation due to alleged breaches of previous agreements.
Background of the Legal Dispute
The origins of this case trace back to an acquisition agreement struck between Sanwire and Intercept Music, which transpired in early 2020. Under this agreement, Sanwire was to acquire certain assets from Intercept Music, compensating the latter with shares and preferred stock. However, serious discrepancies have surfaced regarding the management and distribution of Sanwire’s common stock in the ensuing years.
Financial Transactions and Allegations
From late 2020 to early 2023, Intercept Music reportedly collected around $2.5 million by selling Sanwire's shares and issuing convertible notes. Intriguingly, Sanwire claims it did not receive any proceeds from these transactions, yet it remains liable for the convertible notes.
Further complicating matters, in late 2021, a convertible promissory note was arranged between Trillium and Intercept Music, leading to funds that were, again, diverted directly to Intercept Music's account. Sanwire asserts it never saw any of this money and continues to stand as the obligor on these financial instruments.
The Impact of Share Conversions
The core of Sanwire's complaint revolves around significant stock conversions executed by Trillium, which resulted in the issuance of over 600 million shares—diluting Sanwire's capital structure and driving down its share price. This situation has led Sanwire to a critical juncture, as the number of issued common shares has ballooned to nearly 2.9 billion.
Demands Outlined in the Complaint
In light of these events, Sanwire's complaint lays out a series of requests for relief. Among these, the company seeks the undoing of the acquisition agreement with Intercept Music, alongside the return and cancellation of more than 1.3 billion shares that are currently held by various stakeholders tied to Intercept Music.
Financial Compensation and Restitution
Specifically, Sanwire is also demanding financial restitution amounting to $250,000 for expenses related to the reversal of the acquisition and reimbursement of over $122,000 linked to the convertible note. As the matter progresses, Sanwire expects compensation for all expenses incurred during these legal challenges, including attorney fees and other associated costs.
Statements from Leadership
Ron Hughes, the President and CEO of Sanwire, emphasized the company's commitment to legal recourse as a means to protect shareholder interests. He expressed that while the company is open to potential resolutions outside of court, it remains steadfast in its determination to pursue the necessary reparations. This resolve stems from the belief that resolving these issues will enhance Sanwire’s financial standing and its appeal to future investors.
About Sanwire Corporation
Sanwire Corporation is focused on leveraging technological synergies across various sectors. The company continues to seek opportunities for business improvements and partnerships as it strives to navigate project developments and enhance shareholder value in a competitive landscape.
For press inquiries, please contact:
Ronald E. Hughes
CEO, Sanwire Corporation
ron.hughes.management@gmail.com
Frequently Asked Questions
What is the reason behind Sanwire's legal action?
Sanwire's legal action primarily seeks to recover shares and monetary compensation due to alleged breaches of previous agreements by Intercept Music and Trillium Partners.
How much is Sanwire seeking in terms of compensation?
Sanwire is pursuing $250,000 in fees related to the reversal of an acquisition transaction, alongside additional compensation for expenses incurred during the legal process.
What events led to this complaint?
The complaint stems from financial discrepancies involving the sale of Sanwire's shares without the company's consent and subsequent significant stock conversions that diluted shareholder value.
Who are the parties involved in this dispute?
The parties involved in the dispute include Sanwire Corporation, Intercept Music, and Trillium Partners LP.
What does Sanwire aim to achieve through this complaint?
Sanwire aims to unwind the Acquisition Agreement, reclaim improperly distributed shares, and secure financial reimbursement to improve its share capital structure.
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