Mawson Infrastructure Group Inc. Responds to Recent Report
Mawson Infrastructure Group (NASDAQ: MIGI) has responded to false media reports about filing voluntary Chapter 11. The company clarifies that Australian entities, W Capital Advisors Fund and Marshall Investments MIG Trust, have filed an involuntary Chapter 11 petition against them. Mawson's Board intends to vigorously defend against this filing and continues normal operations.
The company has raised concerns about W Capital Advisors and former director James Manning being related parties. Manning is under investigation by Mawson's Audit Committee regarding dealings with W Capital and other matters. Mawson is also involved in litigation with Vertua Property, related to Manning and affiliated with W Capital, regarding alleged self-dealing and breach of contract for their Sharon, PA property.
Mawson Infrastructure Group (NASDAQ: MIGI) ha risposto a false notizie riportate dai media riguardo a una presunta richiesta di Chapter 11 volontario. L'azienda chiarisce che le entità australiane, W Capital Advisors Fund e Marshall Investments MIG Trust, hanno presentato una petizione di Chapter 11 involontaria nei loro confronti. Il Consiglio di Mawson intende difendersi con vigore da questa richiesta e continua le operazioni normalmente.
L'azienda ha espresso preoccupazioni riguardo a W Capital Advisors e all'ex direttore James Manning, che sono considerati parti correlate. Manning è sotto indagine da parte del Comitato di Revisione di Mawson per quanto riguarda i suoi rapporti con W Capital e altri aspetti. Mawson è anche coinvolta in una controversia legale con Vertua Property, legata a Manning e affiliata a W Capital, riguardo a presunti conflitti di interesse e violazioni contrattuali per la loro proprietà a Sharon, PA.
Mawson Infrastructure Group (NASDAQ: MIGI) ha respondido a falsos informes de los medios sobre la presentación de un capítulo 11 voluntario. La compañía aclara que las entidades australianas, W Capital Advisors Fund y Marshall Investments MIG Trust, han presentado una petición de capítulo 11 involuntario en su contra. La Junta de Mawson tiene la intención de defenderse con vigor de esta presentación y continúa con sus operaciones normales.
La empresa ha expresado preocupaciones sobre W Capital Advisors y el exdirector James Manning como partes relacionadas. Manning está siendo investigado por el Comité de Auditoría de Mawson en relación con sus tratos con W Capital y otros asuntos. Mawson también está involucrada en un litigio con Vertua Property, relacionado con Manning y afiliado a W Capital, sobre presuntos conflictos de interés y violaciones de contrato en su propiedad de Sharon, PA.
마우슨 인프라스트럭처 그룹 (NASDAQ: MIGI)는 자발적인 챕터 11 신청에 대한 잘못된 언론 보도에 응답했습니다. 회사는 호주 기관인 W Capital Advisors Fund와 Marshall Investments MIG 신탁이 그들에 대해 비자발적인 챕터 11 청원을 제기했다고 설명합니다. 마우슨 이사회는 이 청원에 대해 강력히 방어할 의도를 가지고 있으며 정상적으로 운영을 지속하고 있습니다.
회사는 W Capital Advisors와 전 이사 제임스 매닝이 관련 당사자로 여겨진다는 우려를 표시했습니다. 매닝은 W Capital 및 기타 사항에 관한 거래와 관련하여 마우슨 감사 위원회에 의해 조사 중입니다. 마우슨은 또한 W Capital과 관련된 매닝과 관련된 Vertua Property와의 소송에도 연루되어 있으며, Sharon, PA 부동산의 자가 거래 및 계약 위반에 대한 혐의와 관련된 것입니다.
Mawson Infrastructure Group (NASDAQ: MIGI) a répondu à de faux rapports dans les médias concernant une éventuelle demande de chapitre 11 volontaire. L'entreprise précise que les entités australiennes, W Capital Advisors Fund et Marshall Investments MIG Trust, ont déposé une demande de chapitre 11 involontaire contre elle. Le Conseil d'administration de Mawson a l'intention de défendre vigoureusement cette demande et continue ses opérations normalement.
L'entreprise a soulevé des préoccupations concernant W Capital Advisors et l'ancien directeur James Manning en tant que parties liées. Manning fait l'objet d'une enquête par le Comité d'Audit de Mawson concernant ses transactions avec W Capital et d'autres questions. Mawson est également impliquée dans un litige avec Vertua Property, lié à Manning et affilié à W Capital, concernant des allégations de conflit d'intérêts et de violation de contrat pour leur propriété à Sharon, PA.
Mawson Infrastructure Group (NASDAQ: MIGI) hat auf falsche Medienberichte über einen freiwilligen Antrag auf Chapter 11 reagiert. Das Unternehmen stellt klar, dass die australischen Einrichtungen, W Capital Advisors Fund und Marshall Investments MIG Trust, einen unfreiwilligen Chapter 11-Antrag gegen sie gestellt haben. Der Vorstand von Mawson beabsichtigt, sich energisch gegen diesen Antrag zu verteidigen und führt die normalen Operationen fort.
Das Unternehmen hat Bedenken geäußert, dass W Capital Advisors und der ehemalige Direktor James Manning verwandte Parteien sein könnten. Manning wird vom Prüfungsausschuss von Mawson hinsichtlich seiner Geschäfte mit W Capital und anderen Angelegenheiten untersucht. Mawson ist auch in einen Rechtsstreit mit Vertua Property verwickelt, der mit Manning in Verbindung steht und mit W Capital verbunden ist, bezüglich angeblicher Eigeninteressen und Vertragsbrüchen für ihr Grundstück in Sharon, PA.
- Company continues normal operations and execution of business plan
- Company maintains active legal defense against potentially improper proceedings
- Facing involuntary Chapter 11 petition from Australian entities
- Ongoing litigation regarding breach of lease agreement for Sharon, PA property
- Investigation of former director for alleged self-dealing and breach of contract
- Legal disputes potentially affecting company operations and stability
Insights
The involuntary Chapter 11 petition against Mawson Infrastructure Group represents a significant legal challenge with potential market implications. This situation involves complex allegations of self-dealing and conflicts of interest between former executives and related parties. The key concerns center around W Capital Advisors, James Manning (former board director) and Vertua Property Inc.
The ongoing litigation in Pennsylvania (Case #2024-2332) regarding the Sharon, PA property lease adds another layer of complexity. Critical points include:
- The company is actively defending against the involuntary bankruptcy filing
- There's an Audit Committee investigation into James Manning's dealings
- Multiple legal proceedings are ongoing in both US and Australia
This situation presents significant financial and operational risks for MIGI. With a market cap of just
- Business relationships and contracts
- Access to capital markets
- Operational stability
- Investor confidence
The company's focus on US operations while potentially exiting Australian entities indicates a strategic pivot, but the legal challenges could impede execution of their business plan. The stock is likely to face increased volatility until these matters are resolved.
MIDLAND, Pa., Dec. 04, 2024 (GLOBE NEWSWIRE) -- Mawson Infrastructure Group, Inc. (NASDAQ: MIGI) (“Mawson” or “the Company”), a publicly-traded technology company focused on digital infrastructure platforms for artificial intelligence (AI), high-performance computing (HPC), and digital assets markets, notes that a media outlet earlier today falsely reported that the Company has filed a voluntary Chapter 11 petition.
Rather, entities in Australia, including W Capital Advisors Pty Ltd as trustee for the W Capital Advisors Fund and Marshall Investments MIG Pty Ltd as trustee for the Marshall Investments MIG Trust, have filed an involuntary Chapter 11 petition against the Company. The Company has not yet been formally served with an involuntary petition; however, if served, the Company’s Board of Directors intend to vigorously defend the Company against such a filing to the full extent of the law. Mawson expects to continue to operate as usual and execute its business plan accordingly.
The Company has previously corresponded with W Capital Advisors Pty Ltd as trustee for the W Capital Advisors Fund and its representatives, and the Company has expressed significant concerns about W Capital Advisors Pty Ltd as trustee for the W Capital Advisors Fund and James Manning, a former board director and executive of the Company, being related parties. Neither W Capital nor James Manning have responded to the Company’s concerns in a manner satisfactory to the Company.
James Manning is also the subject of an investigation by the Company’s Audit Committee related to his dealings with W Capital Advisors Pty Ltd as trustee for the W Capital Advisors Fund – among several other matters – including current litigation with an entity related to Manning, Vertua Property Inc. (“Vertua”), regarding alleged self-dealing, breach of contract, and tortious interference with a business relationship.
Notably, Vertua is a company not only related to James Manning, but also affiliated with Darron Wolter of W Capital Advisors Pty Ltd as trustee for the W Capital Advisors Fund.
The Company filed a complaint in The Court of Common Pleas of Mercer County, Pennsylvania (file number 2024-2332) on October 17, 2024 against Vertua as landlord for the Company’s Sharon, PA property for breach of the lease agreement and wrongful termination of the lease, as well as for tortious interference with a business relationship. The Company is seeking reinstatement of the lease, compensatory damages, disgorgement of revenue, and exemplary and punitive damages, as well as reimbursement for its costs and litigation expenses.
As per the Company’s most recent 10-Q filing on November 14, 2024, W Capital Advisors Pty Ltd as trustee for the W Capital Advisors Fund and Marshall Investments MIG Pty Ltd as trustee for the Marshall Investments MIG Trust had filed proceedings in Australia, and the Company believes that these entities are using such proceedings in an improper attempt to gain leverage in ongoing legal disputes between the parties. The Company believes that the filing of the involuntary Chapter 11 petition is a continuation of this pattern.
The Company has previously reported through an 8-K filing on March 29, 2024 that the Company may seek to exit certain or all of its entities and holdings in Australia. The Company currently operates facilities in the United States of America and does not have any operating sites or assets in Australia.
About Mawson Infrastructure
Mawson Infrastructure Group (NASDAQ: MIGI) is a technology company that offers digital infrastructure platforms for AI, HPC, and digital assets. The Company’s digital infrastructure platforms can be used to operate computing resources for a number of applications, and are offered across digital assets, artificial intelligence (AI), high-performance computing (HPC) and other computing applications. Our innovation, technology, and operational expertise enables us to operate and optimize digital infrastructure to accelerate the digital economy. The Company has a strategy to prioritize the usage of carbon-free energy sources, including nuclear energy, to power its digital infrastructure platforms and computational machines. For more information, please visit: https://www.mawsoninc.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Company cautions that statements in this report that are not a description of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words referencing future events or circumstances such as “expect,” “intend,” “plan,” “anticipate,” “believe,” and “will,” among others. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon the Company’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include the actions to be taken by the Petitioners and rulings and orders of the U.S. Bankruptcy Court for the District of Delaware (Delaware). More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, Quarterly Report on Form 10-Q filed with the SEC on May 15, 2024, August 19, 2024, November 14, 2024, and in other filings that the Company has made and may make with the SEC in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law.
For more information, visit us at https://www.mawsoninc.com
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Investor Contact:
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FAQ
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