Forum Topics 3DP 3DP Bear Case

Pinned straw:

Added 6 months ago

I’m sorry for those that still hold shares but when the company is involved in Court proceedings to set aside a statutory demand it is usually not a good sign.

POINTERRA LIMITED -v- HERE EUROPE B.V.  [2024] WASC 212

http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/wa/WASC/2024/212.html

Bradbury
Added 6 months ago

Never a good look to be going to court with your creditors, however it looks like the application was granted?

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Another cap raise coming to pay the law firms fees?

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cbirtles
Added 6 months ago

Sure Pointerra won the application but the test was whether there was a genuine dispute about the debt, not whether the debt was payable at all. I have no idea which of the parties would win a true contest about the substance of the dispute. All I said was not a good sign.

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Bradbury
Added 6 months ago

Completely agree. Unfortunately there haven't been many for awhile.

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Bear77
Added 6 months ago

This is one of those "events" I have been warning about that could easily send a company like 3DP into voluntary Administration (VA) if these cases go against them. The very basics are that 3DP signed an agreement with HERE for a 3-year term for the provision of data to 3DP by HERE for annual fees totalling not less than $250K/year (MALF or Minimum Annual Licence Fee). 3DP don't want to pay because they say the data was deficient and unfit for purpose, however all parties agree that the original agreement is governed by the law of the Netherlands as stated in clause 12.9 of the agreement and 3DP's case is that it should not have to pay under Australian Consumer Law (specifically the "unfit for purpose" claim that 3DP is making about the data that HERE has provided to them).

I'm not suggesting that this applies in this case, however one could imagine that IF a company LIKE 3DP (the "hypothetical company") was to organise for the type of data feed that HERE provides in anticipation of being awarded a significant contract (or two) that would require the use of said data, and then that contract (or multiple contracts) was/were NOT then subsequently awarded to the "hypothetical company" that was expecting to be awarded those contracts, that "hypothetical company" COULD conceivably be willing to look for and use any possible "out" they could find to get out of paying for data that in the end was of no commercial use to them.

It's one thing to have great software capable of producing great analysis and processing power at much faster speeds than previously available software, but it's still a case of "garbage in, garbage out" as well as needing customers prepared to pay for those services. You can build a better mousetrap, but that's probably not going to be too revolutionary unless people have a mouse problem.

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