MicroCloud Hologram, Inc. NASDAQ: HOLO

MicroCloud Hologram, Inc. became a publicly traded company in September 2022 through a merger with a special purpose acquisition company. As part of that transaction, MicroCloud assumed publicly traded warrants entitling holders to purchase MicroCloud common stock (NASDAQ: HOLO) at $10.00 per share.

Investors have alleged that MicroCloud was required to register the shares underlying the warrants within a set period after the merger and, failing that, to permit warrant holders to exercise their warrants on a “cashless” basis. Investors contend that MicroCloud never registered the underlying shares and then refused requests to exercise warrants on a cashless basis after the applicable deadline passed.

Investors filed claims against MicroCloud in federal court in the Southern District of New York asserting breach of contract arising from this conduct. The litigation remains pending.