EQUONEX SHAREHOLDER ACTION REMINDER: Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Eqonex To Contact Him Directly To Discuss Their Options
NEW YORK, June 10, 2023
NEW YORK, June 10, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Eqonex Ltd. ("Eqonex" or the "Company") (OTC: EQOSQ) and reminds investors of the June 20, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Eqonex stock or options between March 7, 2022 and November 29, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/EQOS.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
On March 7, 2022, Eqonex announced a "strategic partnership" with Bifinity, a payments technology company affiliated with Binance and launched that same day, which initially focused on leveraging "Digivault as an FCA regulated custodian, strengthening the technology supporting the Eqonex Exchange, and expanding Bifinity's geographical footprint through Eqonex's licensing framework." In addition, the two companies announced that they "will continue to engage in non-binding discussions to explore potential merger opportunities, subject to regulatory approval[,]" and "explore opportunities to grow EQONEX's digital asset investment solutions business." Under the partnership, Bifinity issued Eqonex a $36 million convertible loan facility (the "Loan") in exchange for a right to appoint from within Bifinity, Eqonex's CEO, Chief Financial Officer and Chief Legal Officer, as well as two members for Eqonex's board.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Defendants were not interested in leveraging the Exchange or deploying resources to strengthen that technology; (2) Eqonex had no way of paying Bifinity back pursuant to the Loan Agreement; (3) Bifinity and Binance had no intention of consummating a merger between Eqonex and Bifinity or Binance; and (4) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On August 15, 2022, Eqonex announced plans to exit the crypto exchange space, close the Exchange, and focus its resources on its Asset Management and Custody businesses. Despite the Exchange accounting for 79.9% of the Company's revenues in the financial year ending March 31, 2022, Defendants assured investors that day that "proactively exiting the crowded exchange space is the right decision to deliver shareholder value" and "[o]ur Asset Management and Custody business, Digivault, have already made solid progress with the additional resources that we have allocated to them recently, and we are bullish about their prospects as we become an organization focused on these high-potential business areas." That same day, in connection with the Exchange closing and in accordance with the Loan agreement, Bifinity granted Eqonex a waiver for the cessation of a major business and Eqonex agreed to increase its share charge of Digivault under the loan agreement from 24.9% to 100%.
On this news, Eqonex's share price fell over 18% to close at $0.637 on August 17, 2022.
Then, on November 21, 2022, Eqonex disclosed that it was "currently in breach of certain provisions of the Loan Agreement and consequently seeking a waiver from Bifinity on such breaches" and "[b]ased on the working capital forecast prepared by management of the [Company], the financial resources available to the [Company] as of March 31, 2022 and up to [November 21, 2022] may not be sufficient to satisfy the working capital requirements of the [Company] for a period of twelve months from th[at] date … which may cast significant doubt on the Group's ability to continue as a going concern."
On this news, Eqonex's share price plummeted over 48% to close at $0.141 on November 22, 2022.
Finally, before markets opened on November 29, 2022, Eqonex announced receipt of The Nasdaq Stock Market LLC ("NASDAQ")'s Listing Qualifications department's determination that the Company's securities will be delisted from NASDAQ and that trading in those securities will be suspended at the opening of business on November 30, 2022.
On this news, Eqonex's share price fell over 34% to close at $0.093 on November 29, 2022.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Equonix's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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