As CHM only has a asset backing of about 0.01 cent per share and...

As CHM only has a asset backing of about 0.01 cent per share and nothing going for it other than this case, if it loses then they are history. However, you must remember it only ever raised the funds to relist on the basis of its claim against the alledged actions of it past directors and those associated with them. Accordingly, it was never intended that they go digging holes in the ground.

Unless you believe the contents of the SOC to be a complete fabrication then it is reasonable to conclude the Grimaldi's and Barnes' alledged actions did harm to CHM and they are justified in seeking a legal remedy.