Genius Group Sues Alto Opportunity Master Fund, SPC, Ayrton Capital, LLC and Waqas Khatri in New York Federal Court

Rhea-AI Summary

Genius Group Limited (NYSE American: GNS) filed a lawsuit on February 27, 2023, against Alto Opportunity Master Fund and Ayrton Capital, challenging a financing agreement concerning an $18 million loan. The lawsuit aims to rescind the agreement allowing conversion into 49 million shares valued at approximately $200 million. The company seeks to protect shareholder equity and aims to combat toxic lending practices, as noted by CEO Roger Hamilton. Legal representation includes Warshaw Burstein LLP and Christian Levine Law Group, experienced in stock manipulation cases. The group serves 4.3 million users globally, focusing on innovative education.

Positive

• The lawsuit aims to protect shareholder equity by challenging a potentially harmful financing agreement.
• The company has experienced legal professionals representing them, indicating strong commitment to resolving the issue.
• Genius Group has a large user base of 4.3 million users across 200 countries, demonstrating substantial market presence.

Negative

• The financing agreement in question allows for the conversion of a substantial loan into a significant number of shares, potentially diluting existing shareholders' equity.
• The lawsuit indicates prior concerns regarding toxic lending practices, which may signal underlying financial instability or risks.

SINGAPORE, March 01, 2023 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading entrepreneur edtech and education group, announced that on February 27, 2023, the company filed a complaint in the United States District Court Southern District of New York, Case Number 1:23-cv-01639 against Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B, Ayrton Capital, LLC and Waqas Khatri (“The Parties”) seeking an Order that rescinds and declares a financing agreement with Ayrton Capital to be null and void. This lawsuit was filed by Warshaw Burstein LLP of New York and Christian Levine Law Group LLC of Texas, two firms that possess extensive experience and achieved considerable success in litigating stock manipulation cases.

The suit challenges multiple aspects of the financing agreement including Ayrton’s claim that in exchange for lending $18 million dollars to Genius, it can convert this loan into 49 million ordinary shares of the company worth around $200 million dollars. This suit follows multiple claims that the SEC has commenced against toxic lenders who are unregistered brokers and offer “death-spiral” financings to undercapitalized small and mid-cap companies.

Genius Group’s CEO, Roger Hamilton said that “the company is committed to protecting the integrity of its operations and the value of its shareholders equity by investigating and prosecuting toxic lenders, and market manipulators who violate federal securities laws.”

About Genius Group

Genius Group is a world leading entrepreneur Edtech and education group, with a mission to disrupt the current education model with a student-centered, life-long learning curriculum that prepares students with the leadership, entrepreneurial and life skills to succeed in today’s market. The group has a group user base of 4.3 million users in 200 countries, ranging from ages 0 to 100.

For more information, please visit https://www.geniusgroup.net/

Forward-Looking Statements

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company’s Annual Reports on Form 20-F, as may be supplemented or amended by the Company’s Reports of a Foreign Private Issuer on Form 6-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

Contacts

Investors:
Flora Hewitt, Vice President of Investor Relations and Mergers and Acquisitions
Email: investor@geniusgroup.net

Media Contacts: Adia PR
Email: gns@adiapr.co.uk

US Investors: 
Dave Gentry
RedChip Companies Inc
1-800-RED-CHIP
GNS@redchip.com

 

FAQ

What is the lawsuit filed by Genius Group Limited about?

Genius Group filed a lawsuit challenging a financing agreement with Ayrton Capital, aiming to rescind a deal that allows conversion of an $18 million loan into 49 million shares.

When did Genius Group file the lawsuit and where?

The lawsuit was filed on February 27, 2023, in the United States District Court Southern District of New York.

What is the potential impact of the financing agreement on Genius Group's shareholders?

The financing agreement could lead to dilution of existing shareholders' equity due to conversion of a large loan into shares.

Who is representing Genius Group in this lawsuit?

Genius Group is represented by Warshaw Burstein LLP and Christian Levine Law Group, both experienced in litigating stock manipulation cases.

How many users does Genius Group have globally?

Genius Group has a user base of 4.3 million across 200 countries.