Core Viewpoint - SRIVARU Holding Limited is facing a legal claim from Sabby Volatility Warrant Master Fund Ltd. regarding warrant exercises and share delivery disputes, while the company emphasizes its commitment to transparency and shareholder value protection [1][4]. Background & Sabby's Investment Position - Sabby claims entitlement to 989,576 post-split shares, representing a 583% increase, which the company disputes based on the cashless exercise price [2]. - Sabby estimates liquidated damages of approximately $350,000, accruing at about $120,000 per week until shares are delivered, along with additional damages totaling approximately $850,000 for undelivered shares [3]. Company's Response and Legal Action - The company is actively defending itself against the lawsuit and evaluating legal remedies while focusing on its electric two-wheeler mobility business to build long-term shareholder value [4]. - The company has noted stock price volatility and is assessing the impact of warrant exercises and investor sentiment, indicating that Sabby's actions have created downward pressure on stock prices [4]. Warrant Exercise Details - On October 31, 2024, Sabby purchased 16,800,000 units, each consisting of one common share and one warrant, with a cashless conversion provision allowing for two shares per warrant upon exercise [6]. - Sabby's claim is based on a different warrant exercise calculation than the company's documented methodology, which values the exercise at $0.096 per share [6]. - Prior to a reverse split of 50:1, Sabby exercised 13,180,839 warrants, leaving 3,619,161 warrants, which the company calculated would equate to 72,383 warrants post-split [6]. Compliance and Shareholder Value - The company has ensured compliance with contractual obligations while protecting shareholder value and is engaging with legal and regulatory advisors to address shareholder concerns [8].
SRIVARU Holding Limited Provides Update on Legal Claim by Sabby Volatility Warrant Master Fund Ltd.