Envion investors get their money back / Company will be liquidated

Zug (ots) - The Cantonal Court of Zug has ruled that envion AG
shall be liquidated due to a regulatory default called "Organmangel".
This has been reported by the German company Quadrat Capital GmbH, as
shareholder of envion AG. The liquidation will be implemented by the
bankruptcy authority in Zug, in accordance with Swiss bankruptcy law.
As a result, envion AG creditors, an estimated 37,000 ICO investors,
will have their investments returned to them.

The reason for the court ruling is the absence of
government-licensed auditors ("Revisionsstelle"), which in accordance
with the Swiss Code of Obligations is mandatory for companies issuing
public bonds. The original auditors of envion AG, PwC, stepped down
in the beginning of March, after the Supervisory Board detected
irregularities within the ICO.

According to the court it was not possible to engage a new auditor
because the founders team and their Trado GmbH withheld the decisive
ICO data from both the Supervisory Board as well as from the law firm
appointed by the Swiss banking regulatory authority, FINMA. The
suggestion of the supervisory board to judicially appoint an auditor
was also "not practical, due to the fact that without the documents
withheld by Trado GmbH, it is obviously effectively impossible."
(Cantonal Court of Zug, ES 2018 317, S.5).

As a result, the refusal by the founders to release the ICO
information has ultimately led to the liquidation of the company.

According to assessments by shareholder Quadrat Capital, the
refund ratio for investors will depend on whether the bankruptcy
authority only acknowledges the about 86 million tokens placed on the
market for the ICO as justified, or instead also the additional 41
million tokens that were created by the founders without the consent
of the Supervisory Board. In the first case the disbursement rate
could be significantly higher than 90%, in the second case far below
60%.

An additional factor for the disbursement is the investor money
that had been withheld by the founders, which has a volume of up to
USD 10 million. envion AG has initiated two lawsuits against Trado
GmbH to access these funds, which are being continued with the
consent of the Swiss authorities.

As shareholder, Quadrat Capital is pleased that the envion AG
assets were able to be nearly completely preserved and are now
available for distribution to the investors. This can be attributed
to the decision by Supervisory Board President Matthias Woestmann,
already made in February, to exchange the received cryptocurrency
into US dollars. The move protected the assets of the company from
the crash of crypto currencies.

Contact:
Quadrat Capital GmbH
Matthias Woestmann
Ludwigkirchstr. 3
10719 Berlin
Deutschland

Original-Content von: Quadrat Capital GmbH, übermittelt durch news aktuell