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ThreeD Capital (CSE:IDK) provides update on legal action
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  • ThreeD Capital (IDK) has provided an update on ongoing legal action in connection with its sale of shares of New Found Gold
  • The company believes purchaser Palisades Goldcorp was in possession of undisclosed information material to the transaction
  • ThreeD subsequently commenced legal action on March 10, 2020, claiming rescission or C$16 million in damages
  • On July 12, 2021, the company asked New Found to broaden the statement of claim and to increase damages sought to $176,600,000
  • New Found has yet to respond
  • ThreeD, founded by Sheldon Inwentash, is a Canadian-based venture capital firm focused on the junior resource and disruptive technology sectors
  • ThreeD Capital (IDK) is up by 12.07 per cent and is currently trading at $0.65 per share

ThreeD Capital (IDK) has provided an update on ongoing legal action in connection with its sale of shares of New Found Gold.

The company sold the 13,500,000 shares to Palisades Goldcorp at C$0.08 per share for aggregate proceeds of $1,080,000.

The company believes Palisades was in possession of information material to the transaction that was not disclosed at the time.

ThreeD subsequently commenced legal action on March 10, 2020, against Collin Kettell, Palisades and New Found claiming rescission of the transaction or, in the alternative, damages of $16 million or the value of the shares.

ThreeD has also made specific claims for:

  • A declaration that Palisades and Collin Kettell have acted in a manner that is oppressive, unfairly prejudicial or in unfair disregard of its interests
  • A declaration that Palisades and Collin Kettell engaged in insider trading
  • Unjust enrichment
  • Interests and costs

New Found filed a statement of defense on June 12, 2020, and the action has progressed through the production of documents and oral examinations for discovery stages.

On July 12, 2021, ThreeD asked New Found to broaden the statement of claim to include direct claims of oppressive conduct on New Found's part and to increase the damages sought to $176,600,000.

New Found has yet to respond.

ThreeD, founded by Sheldon Inwentash, is a Canadian-based venture capital firm focused on the junior resource and disruptive technology sectors. 

ThreeD Capital (IDK) is up by 12.07 per cent and is currently trading at $0.65 per share as of 12:18 pm ET.

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