NewLead Announces Intention to Pursue Damage Claims Against Ironridge
NewLead Holdings Ltd. (NASDAQ: NEWL) said that on June 3, 2014, NewLead received a Temporary Restraining Order against Ironridge Global IV, Ltd enjoining the issuance of further common shares of NewLead pursuant to its Series A Preference Shares. On June 11, 2014, the United States District Court, Southern District of New York ("Court") determined that a Preliminary Injunction against such further issuance was unavailable because, as a threshold matter, the Court lacked jurisdiction over Ironridge.
Last night, Richard Kreger of Ironridge advised NewLead that Ironridge would like to reinstitute funding. We advised Ironridge that NewLead will not accept any further funding, as NewLead previously provided a default notice and terminated the relationship because of Ironridge's numerous breaches, (including failure to provide necessary collateral). Any funds received from Ironridge will either be held as security for NewLead's damage claims in the arbitration, or returned.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated "We believe that the Court should have accepted jurisdiction to prevent Ironridge from continuing to inflict harm on NewLead through its exercise of 'self-help', pending the outcome of the arbitration. However, we intend to vigorously defend our interests and pursue our claims for significant damages caused by Ironridge's many bad acts, breaches and misrepresentations. We remain concerned that Ironridge has been and will continue manipulating the stock of NewLead based on irregularities in Ironridge's disclosed and undisclosed brokerage relationships and have informed the relevant authorities of these concerns."
Michael Zolotas continued, "We urge other people who are considering whether to do business with Ironridge, and their affiliated principals, John Kirkland, Brendan O'Neil, Richard Kreger, and Keith Coulston, to carefully consider Ironridge's course of conduct with NewLead, as well as other companies who have instituted suits against Ironridge. While Ironridge presents itself as a long-term institutional investor on its website and in conversations with companies, its conduct has proven that it is unconcerned about the impact of its actions on the health of the company and solely concerned with its profit."