Bolt reportedly threatens legal action against Silverbear Capital

Bolt's CEO threatens legal action against Silverbear Capital over a $200 million funding dispute, amid confusing involvement and accusations.

: Bolt's CEO, Justin Grooms, hinted at legal action against Silverbear Capital, alleging miscommunication over a $200 million equity funding. Silverbear's partner Veronica Welch refuted the claims, saying the deal was never approved. Confusion arose when another partner, Brad Pamnani, used Silverbear's emails for a separate SPV managed deal, while The London Fund's involvement in marketing credits was also uncertain.

In a significant development in Bolt’s fundraising efforts, CEO Justin Grooms suggested potential legal action against Silverbear Capital, claiming internal miscommunication led to confusion about a $200 million commitment. Silverbear Capital, a leading investor in the proposed deal, disputed this, with partner Veronica Welch insisting no such agreement existed within the company, as conveyed to Forbes.

Further complicating matters, Silverbear partner Brad Pamnani admitted using the firm’s email for communications about an SPV managed deal from a UAE-based private equity fund, contributing to the confusion. Additionally, The London Fund's CEO confirmed their contribution of marketing credits while simultaneously denying confirmation of any leaked documents implying a concluded transaction with Bolt.

The leaked term sheet revealed Bolt’s aim to raise a total of $450 million, including $250 million in marketing credits, amidst an unconventional pay-to-play structure compelling existing backers to invest or forfeit stakes. Overall, the discrepancies and conflicting statements from Silverbear and The London Fund highlight the ongoing complexity and dispute in Bolt’s high-stake fundraising scenario.

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