Mawson Files Answer To Involuntary Petition By Australian Entities, Alleging Bad Faith Actions And Intimidation; Investigates Former Director James Manning; Pursues Legal Action Against Vertua In PA For Breach, Seeks Sanctions and Damages; May Exit Australia Holdings

Author: Benzinga Newsdesk | January 10, 2025 04:44pm

On January 10, 2025, Mawson Infrastructure Group Inc. ("Mawson" or "the Company"), filed its answer ("the Filing"), attached herein as an Exhibit, to the involuntary petition against the Company (the "Petition") pursuant to 11 U.S.C. § 303(a) filed on December 4, 2024 by W Capital Advisors Pty Ltd, Marshall Investments MIG Pty Ltd, and Rayra Pty Ltd, all of whom are Australian entities (the "Petitioners"). Mawson had previously announced in a filing on Form 8-K issued on December 4, 2024, that the Company's Board of Directors intended to vigorously defend the Company against the Petition filed by these Australian entities.

 

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 were using such proceedings in an improper attempt to gain leverage in ongoing legal disputes between the parties. The Company believes that the filing of this Involuntary Petition is an extension of the ongoing disputes, including with James Manning, the Company's former Board Director and Officer, and a continuation of the pattern of bad faith actions, by James Manning and the Petitioners, with the improper intention of harassing and intimidating Mawson.

 

The Company's counsel plans to propound discovery requests to the Petitioners. In addition, James Manning remains the subject of an investigation by the Company's Audit Committee, including 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 James Manning, Vertua Property Inc. ("Vertua"), regarding alleged self-dealing, breach of contract, and tortious interference with a business relationship.

 

The Company had previously reported through an 8-K filing on March 29, 2024, that it 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.

 

The Company continues to also pursue its complaint filed 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. 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.

 

Mawson expects to vigorously pursue sanctions, attorney fees, general and punitive damages against the Petitioners, as available to the full extent of the law

Posted In: MIGI