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BuildingIQ defends allegations of contract breach and fraud from mCloud

BuildingIQ defends allegations of contract breach and fraud from mCloud

Allegations arose after mCloud sought expression of interest

Credit: Dreamstime

Locally-listed smart tech provider BuildingIQ intends to vigorously defend allegations for breach of contract, fraud and misrepresentation brought upon by mCloud Technologies in the US Superior Court of the State of Delaware.

The allegations arose from an expression of interest in February between the two companies.

mCloud filed a complaint against BuildingIQ alleging claims for breach of contract, fraud and misrepresentation, and is seeking liquidated damages to the tune of A$500,000, which mCloud says it was owed under a promissory note, including compensatory damages, interest and costs.

In a statement lodged with the Australian Securities Exchange (ASX), BuildingIQ “believes the claims are without merit and intends to vigorously defend all claims asserted.”

In March, Canadian internet of things (IoT) firm mCloud Technologies dropped its acquisition bid for BuildingIQ provoking a potential legal tussle.

At the time, BuildingIQ told shareholders that the non-binding expression of interest (EOI), announced on 11 February between the two parties had been terminated.

Under the agreement, mCloud Technologies would have provided a working capital facility to support BuildingIQ this year. 

The deal would have seen BuildingIQ's artificial intelligence and IoT solutions integrated into mCloud's own AssetCare.

At the time, BuildingIQ received half a million dollars in funding towards the facility on 18 February, but had not received any more since.

This then prompted BuildingIQ to “consider its legal options” over the termination and a $500,000 termination fee. 

 

 

 

 

 

 

 


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