Having made a five year commitment promising $2.1 million venture capital for commercial development of SenSys, the Lookman Family Trust could not demand immediate repayment when all parties fell out.
Michael Lookman had put up $1.8 million of his family trust’s promised venture capital for Warwick Jones development of remote real-time access to workplace data when the two fell out spectacularly. Mr Lookman complains about lack of access to company information. He says promised security over SenSys intellectual property has not been handed over. Mr Jones says this intellectual property is ‘inside his head.’
In May 2019, Lookman Trust gave notice that their 2016 funding agreement was ‘cancelled,’ demanding immediate repayment of the $1.8 million advanced to date. The High Court said that their funding agreement did not state cash advances were repayable on demand, neither did it provide for the consequences of any claimed ‘cancellation.’ Even if cancelled, there was no contractual right to repayment until the five years were up.
SenSys has an arguable case that there is no default unless repayment is not made at the conclusion of the funding agreement in December 2021, the High Court ruled. Interest payments due Lookman Trust under terms of its loan are being paid.
Design Electronics Ltd v. Lookman Family Trust – High Court (23.09.19)
19.170