Analyst Summary
- Sabby purchased 16,800,000 units of SRIVARU stock and warrants on October 31, 2024.
- Sabby’s claim is based on a disagreement over the warrant exercise calculation, with Sabby claiming they are owed significantly more shares than SRIVARU calculates.
- Sabby claims entitlement to liquidated damages of approximately $350,000, accruing at $120,000 per week, and damages of approximately $850,000 based on the value of undelivered shares.
- SRIVARU disputes Sabby’s claims and is actively defending itself against the lawsuit.
- Sabby engaged in pre-selling stock during the additional warrant and shares requested timeframe between Jan 15 – Jan 18, 2025.
Opportunities and Risks
- Risk: Legal claim by Sabby Volatility Warrant Master Fund Ltd. could result in financial losses and reputational damage for SRIVARU.
- Risk: Stock price volatility and potential downward pressure due to Sabby’s warrant exercises and short-selling.
- Opportunity: SRIVARU’s actual business of Electric two wheeler mobility in companies operating country is growing.
Potential Implications
Stock Price
- Potential for continued stock price volatility due to the ongoing legal dispute and market reactions.
- Potential downward pressure on the stock price if Sabby continues to engage in short-selling or warrant exercises.