The9 Limited v. Skychain Technologies Inc.

2022 BCSC 1666

On September 20, 2022, the Supreme Court of British Columbia released its judgment in The9 Limited v. Skychain Technologies Inc., 2022 BCSC 1666, following a one-day application for judgment by NST’s clients, The9 Limited and 1111 Limited. The plaintiffs had advanced $4 million to the defendant, Skychain Technologies Inc., for the construction of a crypto currency mining project in Birtle, Manitoba. The advance was split into the following: two million dollars was paid for shares and warrants, and two million dollars was advanced as debt under convertible debentures.

Partner James C. MacInnis, K.C. and associate Edith Chen sought judgment for the outstanding debt on the basis that the defendant was in default of its delivery obligations under the Financing Agreement and that the General Security Agreement provided for acceleration of the debt upon default. The court granted judgment to the plaintiff for the full amount owing under the debentures.