Cyber Apps (CYAP) Files Lawsuit Against East Capital Investments Corp for Significant Damages in Connection with Convertible Promissory Note

Rhea-AI Summary

Cyber Apps World Inc. (OTC PINK:CYAP) has filed a lawsuit against East Capital Investments Corp in the Nevada District Court. The legal action arises from ECI's conversion of $28,750 in debt into 3,523,284 shares of Cyber Apps, executed under a penalty clause of a share purchase agreement. Cyber Apps alleges that ECI ignored requests for a legal opinion regarding compliance with Rule 144, leading to a decrease in market capitalization. The Company seeks damages for this reduction and other punitive damages.

Positive

• Cyber Apps seeks damages for market capitalization decrease, potentially indicating a proactive stance in protecting shareholder interests.

Negative

• The lawsuit could indicate underlying financial instability related to convertible debt, potentially signaling risk to investors.
• The alleged wrongful actions by ECI suggest complications in corporate governance and compliance that may affect investor confidence.

LAS VEGAS, NV / ACCESSWIRE / July 28, 2021 / Cyber Apps World Inc. (OTC PINK:CYAP) ("Cyber Apps" or the "Company") (Cyberappsworld.com), an acquirer and developer of innovative cyber technologies with the potential for disruptive scalability and eventual spin-off success, announces that it has commenced legal action against East Capital Investments Corp ("ECI") in Nevada District Court in connection with ECI's conversion of debt into shares of Cyber Apps pursuant to a penalty clause relating to a share purchase agreement and corresponding convertible promissory note.

In May 2021, ECI converted $28,750 into 3,523,284 Free Trading shares of Cyber Apps pursuant to a penalty that resulted from a February 4, 2021 amendment to the terms of the original share purchase agreement and convertible note. Cyber Apps asked for a legal opinion from ECI's legal counsel confirming that this penalty amount complied with the resale provisions of Rule 144 of the Securities Act, but the request was ignored. ECI sold all of the shares issued pursuant to the penalty clause without any hold period.

The Company is seeking damages for its decrease in market capitalization due to the wrongful actions of ECI, as well as punitive and other damages.

About Cyber Apps World Inc.

Cyber Apps World, Inc. is a company that is dedicated to acquiring and developing a worldwide e-commerce internet platform with the purchase and sale of products and services by way of mobile/computer applications worldwide. Cyber Apps World anticipates making available to subscribers, an ever-growing list of applications and programs.

For more information go to: https://cyberappsworld.com

Forward-Looking Statements

This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. That includes the possibility that the legal action outlined in this press release cannot proceed for some reason. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Cyber Apps World, Inc. to be materially different from the statements made herein. Except for any obligation under the U.S. federal securities laws, Cyber Apps World, Inc. undertakes no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise.

Company Address
9436 W. Lake Mead Blvd.
Suite 5-53
Las Vegas, NV 89134
Phone: (702) 805-0632

For All Inquiries Contact:
info@cyberappsworld.com

SOURCE: Cyber Apps World Inc.

View source version on accesswire.com:
https://www.accesswire.com/657386/Cyber-Apps-CYAP-Files-Lawsuit-Against-East-Capital-Investments-Corp-for-Significant-Damages-in-Connection-with-Convertible-Promissory-Note

FAQ

What is the lawsuit filed by Cyber Apps (CYAP) about?

Cyber Apps has filed a lawsuit against East Capital Investments Corp regarding the conversion of debt into shares under a penalty clause, which they claim has led to a decrease in their market capitalization.

How many shares were converted in the CYAP lawsuit?

East Capital Investments Corp converted $28,750 into 3,523,284 shares of Cyber Apps as per the terms of the share purchase agreement.

What damages is Cyber Apps seeking in the lawsuit?

Cyber Apps is seeking damages for the decrease in market capitalization due to East Capital Investments Corp's actions, along with punitive damages.

What is Rule 144 in relation to Cyber Apps (CYAP)?

Rule 144 outlines conditions under which restricted securities can be sold, and Cyber Apps requested legal confirmation from ECI that their actions complied with this rule, which was ignored.