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GNS Stock Alert: Genius Group Settles Toxic Lending Lawsuit


  • Genius Group (GNS) has settled its lawsuit with Ayrton Capital, Alto Opportunity Master Fund and other parties.
  • The company will honor the remainder of the monthly payments due to the parties.
  • GNS stock is up more than 450% year-to-date (YTD).
GNS stock: a child in front of a laptop taking notes while viewing an online class
Source: Shutterstock

Genius Group (NYSEMKT:GNS) stock is sinking lower after the education technology company disclosed that it had reached an “amicable settlement” with several parties, including Ayrton Capital, Ayrton Principal Waqas Khatri and Alto Opportunity Master Fund.

Previously, Genius had filed a lawsuit against the parties in an attempt to rule an agreement between itself and Ayrton Capital null and void. Ayrton argued that it should receive 49 million shares of GNS stock in exchange for providing the company with an $18 million loan. In response, Genius accused Ayrton of participating in an unlawful scheme as an unregistered broker-dealer.

Now, Genius has withdrawn the complaint following a “mutually beneficial agreement.” Let’s get into the details.

GNS Stock: Genius Settles Lawsuit With Ayrton Capital and Other Parties

First, Genius has withdrawn its allegation that Ayrton is an unregistered broker-dealer and also added that it has not broken any federal security laws in relation to the convertible note financing agreement signed last August. Genius has also agreed to satisfy the rest of the monthly payments owed for the $18 million convertible note in cash. The payments will be made over time “to ensure no further dilution of shares.”

Genius will deliver 13 million shares of GNS stock to the parties. Meanwhile, the parties have agreed to cancel the convertible note conversion of 36 million shares. The parties will also release $6.5 million worth of convertible notes held in deposit to Genius.

The agreement also notes that the parties will invest in Genius’ next “bona-fide subsequent offering.” Based on current prices, the investment amount will be between $3.7 million and $6.2 million. The date of the next offering has not yet been disclosed. Genius also stated that it looks forward to doing further business with the parties in the future.

Ayrton Principal Waqas Khatri said the following about the news:

“We are pleased to resolved this matter in a manner that is in the best interests for both our investors and the Company. We look forward to an ongoing partnership with Genius Group.”

Meanwhile, Genius’ investigation against various parties in relation to possible market manipulation is still open. The company has retained Christian Levine Law Group, LLC and Warshaw Burstein, LLP to assist with the investigation.

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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/03/gns-stock-alert-genius-group-settles-toxic-lending-lawsuit/.

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