First Global Data Ltd (CVE:FGD) Reports Receipt of Application


First Global Data Ltd (CVE:FGD) reported that it was recently served with a claim by Fountain Asset Corp. This application has been started in the Ontario Superior Court of Justice. In the submission, the company is seeking an order that it provide to Fountain options to enroll for and purchase 3.375 million common shares of the firm at $0.10 per share depending on the terms of a Financial Advisor deal dated August 29, 2015.

The update

First Global Data maintains that Fountain is not entitled to get these options for many reasons. Fountain is even seeking a declaration that it is entitled to register for and purchase 3.5 million common shares of the firm at $0.11 per share following a warrant certificate, recorded August 31, 2015. The company asserts that Fountain is not entitled to exercise the warrants.

First Global further mentions, as it would like to state that its shareholders comprehend, that Fountain had an active role in forcing the firm to issue 26 million common shares in FY2015 in what was apparently an unrelated deal. The firm has noted previously and as of now is considering appropriate possibilities of recourse in attempt to recover these shares.

The firm is in the course of probing Fountain’s allegations. Its management considers that the legal proceeding started against the firm is without merit and plans to vigorously defend it.

First Global is a global financial services technology company. The firm’s two key lines of business are cross border payments and mobile payments. Its proprietary advanced technology allows the convergence of compliant cross border and domestic payments, shopping, Peer to Peer, Business to Consumer, and Business to Business payments. First Global allows its clients and strategic partners around the world with their leading edge financial services know-how platform.

In the last trading session, the stock price of First Global declined over 2% to close at $0.920.

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