Section 8 - Other Events Item
Item 8.01 Other Events.
As SolarWindow Technologies, Inc. (the "Company") previously reported, Light
Quantum Energy Holdings ("LQE") is party to that certain Stock Purchase
Agreement between Kalen Capital Corporation a company formed and existing under
the laws of Alberta, Canada, and its relevant subsidiaries ("KCC"), wholly-owned
by Harmel S. Rayat ("Mr. Rayat") and LQE a company incorporated and registered
in the Cayman Islands, the outstanding voting securities of which are
wholly-owned by Mr. Rhee and his common-law spouse Seongae Ko (the "SPA"),
pursuant to which LQE purchased from KCC and KCC sold to LQE (i) 32,984,331
shares of the company's common stock (ii) 16,780,167 cash only warrants to
purchase up to 16,780,167 shares of the Company's common stock and (iii)
1,781,750 cashless warrants to purchase up to 1,781,750 shares of the Company's
common stock, collectively, the securities described in clauses (i), (ii) and
(iii) are herein referred to as the "KCC SolarWindow Securities," subject to the
terms and conditions of the SPA, including such terms and conditions relating to
payment and operating restrictions. The foregoing summary of the material terms
of the SPA described above does not purport to be complete and is qualified in
its entirety by reference to the full text of the SPA, and the amendments
thereto, which were previously filed by the Company. Please see Exhibits 99.1
and 99.2 to this report.
On May 16, 2022, KCC and Kalen Capital Holdings, LLC ("KCH")(collectively,
"Kalen"), filed a Notice of Application-Without Notice, as amended on June 8,
2022, (the "Notice of Application") in the Supreme Court of British Columbia
(the "Court") naming Light Quantum Energy Holdings, Worldwide Stock Transfer,
LLC ("WST"), SolarWindow Technologies, Inc., John Rhee, and Seongae Ko as
defendants (the "Defendants"). The relief the plaintiffs seek includes, but is
not limited to, the transfer of the KCC SolarWindow Securities to KCC, damages
against LQE for breach of the SPA, an interlocutory injunction a) preventing the
defendants, until further court order, from taking actions or entering into
transactions concerning the KCC SolarWindow Securities; b) enjoining LQE, John
Rhee and Seongae Ko from exercising any shareholder rights associated with the
KCC SolarWindow Securities, including, but not limited to i) selling their
interest in any of the KCC SolarWindow Securities' ii) exercising voting rights
associated with the KCC SolarWindow Securities; iii) appointing or removing
directors; iv) exercising the warrants; and v) appointing signatories for bank
accounts of the Company.
Also on May 16, 2022, on Order Made After Application, the Court ordered that
LQE, John Rhee, Seongae Ko, WST and the Company be enjoined from taking actions
or entering into transactions concerning the KCC SolarWindow Securities or
dealing in such a manner as to reduce the value of the KCC SolarWindow
Securities; and further, that LQE, John Rhee, Seongae Ko are enjoined from item
b(i) through b(v) described in the preceding paragraph.
On June 9, 2022, the Company was served the Notice of Civil Claim dated May 16,
2022, and related Notice of Application and Order Made After Application, copies
of which are attached to this report as Exhibit 99.3.
The foregoing summary of the Notice of Application, Order Made After Application
and Notice of Civil Claim does not purport to be complete and is qualified in
its entirety by reference to the full text of the Notice of Application, Order
Made After Application and Notice of Civil Claim which are filed herewith by the
Company as Exhibit 99.3, to this report.
The Company is in the process of reviewing the Notice of Civil Claim, the Notice
of Application and the Order Made After Application so as to determine what
response if any may be required.
Item 9.01 Financial Statements and Exhibits
Number Description
99.1 Agreement dated December 8, 2021, between Kalen Capital Corporation
and its relevant subsidiaries, including but not necessarily limited
to Kalen Capital Holdings LLC, and Light Quantum Energy Holdings.
(Incorporated by reference to Form-8-K filed on December 14, 2021)
99.2 Corrective Amendment dated December 8, 2021, to the Agreement dated
December 8, 2021, between Kalen Capital Corporation and its relevant
subsidiaries, including but not necessarily limited to Kalen Capital
Holdings LLC), and Light Quantum Energy Holdings. (Incorporated by
reference to Form-8-K filed on December 14, 2021)
99.3 Notice of Civil Claim, Endorsement on Originating Pleading or
Petition for Service Outside British Columbia
Notice of Application - Without Notice; Affidavit
* Filed herewith
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