Stockholm IT confirms breach of contract
In an announcement yesterday (8 Feb 18), Stockholm IT (“SITV”, SVAB.DE/SVAB.F) acknowledges their breach of contract, adding various incorrect details. We need to address a few directly misleading statements:
– The complete technology platform including all “keys” and rights were in their entirety placed in the online Asset Transfer DD room for SITV to review, which was registered and monitored by our lawyers and still exist in its full format for later legal verification purposes. Thus, the claims purported by SITV yesterday of lack of DD material are simply untrue. Additionally, a full Due Diligence was also waived in the original contract, which was announced to the market as “completed”. Instead, there is an asset transfer clause where SITV has to take possession of the transferred assets that was delivered by Wyrify. This “Asset DD room” was closed in December last year, since the “keys to the technology” were there and SITV did not actively revise the technology. Access tracking proves this.
– The CEO of SITV, Anthony Norman, on Saturday (3 February 2018) falsely stated in a “live webinar” to shareholders/investors that SITV was “currently doing DD of Wyrify”. This was one week after SITV refused NXChain’s official request for issuing a joint statement on the SITV breach of the Wyrify transaction. Yesterday’s German SITV press release contradictory implies that DD was completed long ago, stating that “after completing Due Diligence, SITV previously offered the Wyrify Stakeholders an alternative solution for completing the transaction”, clearly contradicting the statement to investors from their own CEO. The same press release even proclaims a third false option; that “after completing Due Diligence, SITV decided to cancel the Wyrify transaction”. These statements are mutually contradictive and obviously at least one is false, constituting deliberate misinformation of shareholders/investors and Wyrify.
– Stockholm IT never reported back on the asset transfer DD room review with specific discreprancies. These items were all listed in a very detailed document supplied to SITV with a complete summary of the asset transfer, in bullet points exactly corresponding to the asset list in the contract. Of 100+ pages of documentation there has been one discussion concerning one of several customer relationship documentations only.
– Wyrify has recently completed another more professional and thorough technology review, based on identical DD material to what SITV has been presented with, resulting in a new investment in Wyrify. The Wyrify platform has previously been through a complete US SEC/FINRA-level due diligence when the underlying technology platform was initially sold to NXChain, a listed US company; completed with very few remarks. Given that Stockholm IT does not understand blockchain technology, we accept that they had a difficult time evaluating the assets and therefore failed to acknowledge the asset transfer. This is not the same as Wyrify not delivering according to contract, or underdelivering, or allowing a cancellation of an already completed, concluded and publicised contract that hundreds of shareholders has invested according to, and relied on.
– We have demonstrated and piloted our solutions with different industry players since 2015, which is well documented. No parties, including Stockholm IT, have reported any concerns using our Blockchain backbone and/or the Wyrify POS beacons.
From the NXChain and Wyrify stakeholders’ side, the contract has not been terminated, but the assets have been put under management awaiting clarification of the contractual breaches from SITV. With the public announcement of SITV declaring the agreement cancelled, we await this to be communicated to us legally and professionally as regulated in the contract. Wyrify has fully completed its part of the agreement and delivered everything according to contract. SITV only signed the contract for acquiring the Wyrify assets to make another “completed deal” and benefit from the goodwill created by the announcement to attract new investments, but never paid for or followed up the acquisition. To avoid Wyrify getting locked up in further months of stalling, the Wyrify assets were assigned to a third party for operational management, to enable the group to live up to their contractual obligations with customers, which is already experiencing serious delays due to SITV wasting five months on underperforming on the Wyrify contract. We otherwise welcome the termination, bringing clarity after five months of stalling tactics.
Wyrify Ltd and the other involved parties aim to avoid further discussions on the SITV misconduct and will follow up the matter legally. We do however retain the right to correct further directly false SITV claims or statements.