SECsense Logo

SRIVARU Holding Limited's 6-K Report: Legal Dispute with Sabby Fund Unveiled

$SVMH
Form 6-K
Filed on: 2025-02-21
Source
SRIVARU Holding Limited's 6-K Report: Legal Dispute with Sabby Fund Unveiled

Key Information Extracted from the 6-K Filing of SRIVARU Holding Limited

  1. Company Information:
  • Name: SRIVARU Holding Limited
  • Address: 3rd Floor, Genesis House, Unit 18, Genesis Close, George Town, P.O. Box 10655, Grand Cayman KY1-1006, Cayman Islands.
  • Commission File Number: 001-41884
  1. Report Context:
  • This report is filed under Form 6-K and pertains to legal proceedings involving the company. The filing is made pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934.
  1. Legal Claim:
  • The company is facing a legal claim by Sabby Volatility Warrant Master Fund Ltd. in the Supreme Court of the State of New York (Index No. 650870/2025).
  • The claim relates to a disputed warrant exercise valuation and potential damages.
  1. Warrant Details:
  • On October 31, 2024, Sabby purchased 16,800,000 units, each consisting of one common share and one warrant.
  • The warrants included a cashless conversion provision, allowing for the receipt of two shares per warrant upon exercise.
  • Sabby's valuation of the exercise differs from the company’s documented methodology, claiming it should be based on a different calculation.
  1. Claims and Disputed Calculations:
  • Sabby asserts that it should have received 989,576 post-split shares, which is a 583% increase from the company's calculation of 144,766 shares post a 50:1 reverse split.
  • Sabby claims entitlement to liquidated damages of approximately $350,000, accruing at about $120,000 per week, and an aggregate amount of $850,000 for shares not delivered.
  1. Company's Position:
  • The company intends to defend itself against the lawsuit while maintaining transparency and compliance.
  • It disputes the claims made by Sabby, asserting that all necessary disclosures were made during the offering process and that Sabby engaged in pre-selling activities that exposed the company to potential risks.
  1. Company Operations:
  • SRIVARU Holding Limited is committed to continuing its operations in the electric two-wheeler mobility market, aiming to build long-term shareholder value despite ongoing legal challenges.
  • The company is assessing the impact of stock price volatility and the implications of warrant exercises on investor sentiment.
  1. Forward-Looking Statements:
  • The report contains forward-looking statements regarding the ongoing legal proceedings, emphasizing that actual outcomes may differ due to various external factors.

Summary Insight:

SRIVARU Holding Limited is currently embroiled in a significant legal dispute with Sabby Volatility Warrant Master Fund, which could potentially impact the company financially and operationally. The resolution of this legal matter is crucial for maintaining investor confidence and ensuring the company's ability to execute its growth strategy in the electric mobility sector.