"(S)hould be entitled", provided that ATC can demonstrate that the breaches /inability to complete flowed from FNT. Some of the hardest battles I have fought over time have been recovering deposits from previous certainities (etc). The point being, once the money has been paid over, it usually entails an expensive fight getting it back - unless of course it was paid into trust, pending completion (ie: escrowed, etc).
Your convertible note argument presents a plausible scenario, but again, this will "present... a challenge for management to regain these funds ASAP and utilise within the business".
All points considered, but now ATC needs to pick up the pieces and move on, whilst pinning FNT down on matters of the deposit, etc.
As for any future damages, both you and I know that this will always be hard to prove and, in any event, will take years of legal wrangling before anything finally eventuates, at which time, the likelihood of there being funds available to pay for the damages may well be limited (ie: by FNT).
ATC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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