$CYAP Files Lawsuit Against EMA Financial LLC for Over $15 Million in Damages
LAS VEGAS, NV / ACCESSWIRE / June 10, 2021 / Further to its news release dated May 3, 2021, Cyber Apps World Inc. (OTC PINK:CYAP) (“Cyber Apps” or the “Company”), 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 EMA Financial, LLC’s (“EMA”) in Nevada District Court for breach of contract claims relating to a share purchase agreement and corresponding convertible promissory note.
In March 2021, Cyber Apps attempted to prepay EMA’s convertible promissory note for the premium stipulated in the note, but EMA, relying on a most favored nation clause, took the position that the payout amount was significantly higher than the amount that Cyber Apps believed was due. Cyber Apps’ legal counsel put EMA on notice that the Company disputed the prepayment amount due pursuant to the note.
On April 6, 2021, EMA provided Cyber Apps and its transfer agent with a notice of conversion whereby it instructed the transfer agent to convert the entire principal amount of the note, plus interest, for 1,281,682 shares of the Company. Because the note contains a clause that allows EMA to cancel the conversion if the shares are not issued within one business day of the conversion notice, EMA canceled the conversion on April 8 following the decline in Cyber Apps’ stock price. The transfer agent advised Cyber Apps that it could not issue the converted shares by the one business day deadline because EMA did not provide it with the necessary documentation to effect the conversion and issue the shares.
EMA provided successive conversion notices to the Company and its transfer agent, which resulted in EMA being issued 18,369,800 shares of Cyber App’s common stock. Through its sales of this stock, the Company’s share price declined from by over 90% from $0.102 on April 6, 2021, to $0.009 on May 23, 2021.
Cyber Apps was ready, willing, and able to prepay EMA’s note for the amount originally stated in the note by the prepayment deadline date and suffered damages due to EMA’s failure to accept that prepayment. Moreover, the Company alleges that EMA acted in bad faith by providing notice of conversion of its note to its transfer agent and then failing to provide the transfer agent with the documentation necessary to effect the conversion so that it could withdraw the conversion if Cyber Apps’ stock price subsequently fell or proceed with the conversion if the stock value increased or remained stable.
The Company is seeking damages of $15,256,438 for its decrease in market capitalization due to the wrongful actions of EMA, as well as punitive and other damages.
