Proactive: I'm joined by Francesco Gardin. He's the chairman and the CEO of Quantum Blockchain Technologies PLC (AIM:QBT). Francesco, your subsidiary Clear Leisure 2017, won the Venice Court of Appeal and the lawsuit against former directors and auditors of CPM. Can you give us a bit of background into the case?
Francesco Gardin: First of all, good morning, Stephen. Glad to see you again. And, yes, it's a pleasure to try to explain what is, unfortunately, a very technical Italian law situation, which may not be so understandable for, the occasional reader. But, in short summary, we had a first result back in October 2022, where the first ruling awarded us €6.2 million plus inflation for the valuation.
As a result of that ruling, the defendants did two things: they appealed against the ruling, and they appealed against our ability to collect until such time when the appeal would be completed and the ruling of the appeal will be out. Not all defendants had been awarded this flexibility and having our ability to collect frozen. In particular, the main defendant was not granted this right, and another defendant was not granted this right. In the meantime, we negotiated a settlement with the defendant who had our ability to collect frozen, and that's where we are.
Proactive: You were previously awarded a €700,000 settlement. You now have a damage record of €6.1 million. What happens to the €700,000, Francesco?
Francesco Gardin: So, let me elaborate a little bit. Again, about the €6.2 million, the concept here is several positions, which means that the main defendant is liable for €6.2 million, but other defendants are liable for various amounts: two for €4.5 million, and another one for €1 million. This means that if the main defendant doesn't pay, we can collect from the others, and vice versa. After the appeal hearing, we can now collect not only from the main defendant but also from other defendants who had their positions frozen and are now liable to settle for the amount.
In the case of two defendants, €4.5 million; another for €1.4 million; and the case of the defendant will settle for €1 million plus interest plus motivation. So, while the technicality of the settlement is complex, we believe this money should not be returned. However, negotiations have already started, and we have indications from the defendant and the lawyers that there is room for another agreement, which could improve the €700,000 position because the ruling states they should return €1 million. The settlement was based on the court removing the defendant from the case, which didn't happen. Therefore, we will pursue our rights to collect if we can reach another agreement with the defendants.
Proactive: So what are the next steps, then, Francesco?
Francesco Gardin: Of course, while waiting for the ruling, we have been working to collect information about the defendants' assets. Negotiations have already started with the receiver and the lawyers. I wouldn't say we are optimistic because I don't want to create any expectations, but our legal team in Milan has been very efficient during both the first hearing and the appeal.
Proactive: Francesco, in the meantime, how are you progressing with your R&D?
Francesco Gardin: As you know, I cannot disclose anything that hasn't been made public. However, our team of over 20 researchers is making progress every day. We aim to ensure that any new product we release performs reliably in operational conditions, such as a Bitcoin mining facility running 24/7.