Announcement names Alto Opportunity Master Fund SPC - Segregated Master Portfolio B as the investor.
Ayrton Capital LLC, registered in the Cayman Islands, but with offices in New York,controls Alto Opportunity Master Fund, SPC - Segregated Master Portfolio B.
There is limited information about Alto on the internet, but I did come across this case, which never made it to trial, but did involve Alto.
Please note that this is for any shareholder who thought it would be good to know this information, and perhaps email EN1 if you believe you'd like more information. This post is simply because I would have wanted to know this had I not come across it myself.
Important: although Alto was one of named defendants in the case, the case never made it to trial and was voluntarily dismissed, without prejudice and without costs. In other words, the case did not proceed, for what reasons,and under what circumstances, it did not proceed, I do not know.
Linkto Case
gov.uscourts.nysd.498416.1.0.pdf
SecuritiesPurchase Agreementexample
In that action the Defendants, of which Alto was one, were alleged to have acted in a "deceptive,fraudulent, and bad faith scheme to control Plaintiff, a publicity-traded company, and manipulate its share price for the benefit of Defendants and at the expense of Plaintiff and its shareholders." Specifically the Defendants were issued "senior convertible notes (convertible at $4.58/share) as well as warrants(exercisable at $4.58/share) to purchase significant percentage of Plaintiff's common stock. Both the exercise and conversion prices were subject to downward adjustment based on the Company's share price. Upon information and belief, in order to take advantage of this adjustment right, immediately after the Securities Purchase Agreement was entered into and continued thereafter, Defendants or those acting on their behalf caused to be short sold Plaintiff's stock in sufficient volume to drive down the share price approximately 53% from $4.58 per share to as low as $2.13 per share and destroy over $100 million in market capitilization in only a matter of months"... "Plaintiff...believes...that Defendants caused the Common stock to be shorted through certain of their-party affiliates and/or brokers. For example, Northland Securities, Inc., a securities brokerage firm, and Oppenheimer & Co. Inc., an investment firm, began heavily shorting Common Stock only shortly after Defendants entered into the SPA."
Again,case was dismissed, so Alto was not found to have done anything wrong. It did occur in, after all, the USA, where people/companies sue other parties all the time. However, if anyone could shine further light on this, that would be great. As Alto is now a main investor in this company, perhaps it would be good to receive an explanation from them regarding what occurred.
