Class action lawsuits happen on occasion in the world of publicly traded companies, and ZOOMPASS HLDGS INC COM USD0.0001 (POST FWD SPL (OTCMKTS:ZPAS) is not immune to that, it seems.
Over the past week or so multiple law firms have attempted to gather plaintiffs who lost money during a selloff that occurred in ZPAS earlier this spring, which may or may not have something to do with an alleged ‘pump-and-dump’ scheme involving members of management.
In terms of ZOOMPASS HLDGS INC COM USD0.0001 (POST FWD SPL (OTCMKTS:ZPAS) we’re not really concerned with any of that as much as we are the current rebound building on the ZPAS chart in spite of the negative press. From its low reached on June 6th in the lower eighty-cent range, the stock has bounced back to trade as high as the 1.50 range.
Setting aside the fact that the company could be lawfully required to pay damages if any wrongdoing is found (though we often see class action lawsuit efforts evaporate before anything is resolved) as we said, we are more interested in the current trend on the chart.
Prior to any mentioning of a class action suit, the company had released an announcement pertaining to an agreement it had entered into to acquire a Transportation Enablement Platform which provides fully automated dispatching and bookings management built for taxi companies, limousine companies and ride-sharing service providers.
The Platform gives customers an app based experience while the acquired cloud-based Platform, provides service providers a range of functions which include customer booking, accounts management, driver tracking, real-time notifications, auto dispatching algorithms, accounting and settlements, corporate account management as well as providing reporting and analytics. The Platform has also shown to have a direct application in the B2B space in providing corporations with a more efficient taxi chit solution to combat fraud and excessive administration costs.
In exchange for the acquisition of the Platform from a private Canadian based company, the Company will be providing as consideration the equivalent of up to Cdn$1,000,000 in the form of non-registered shares in the common stock of the Company, based on a share price of the lesser of US$3.00 per share, or the share price on closing. The equivalent of Cdn$400,000 in Zoompass shares is payable on closing with Cdn$300,000 payable in shares on the first anniversary of the closing, subject to the satisfaction of certain milestones,, and an additional Cdn$300,000 payable in shares on the second anniversary of the closing, subject to the satisfaction of certain milestones.
The Company believes the continued development of the Platform can be leveraged into the Company’s e-Wallet payment and prepaid card solutions. (Source: Marketwired)
At the time it was reported by ZPAS that closing on the acquisition would occur in June, so we’ll have to keep our ears to the tracks for updates on that situation, as well as a possible statement from the company regarding the allegations that have been levied in multiple suits.
In the meantime, it will be interesting to see how far up the chart ZPAS can ‘sail against the wind’ so to speak, in this latest impressive rebound. If you want to easily follow ZPAS’s progress the solution is very simple. We’ll stay up on any developments with ZPAS and continue to pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ZPAS stock, short or long.