An investment banker signed an agreement under which it is entitled also to warrants in the companies for which it worked to find investors. The shareholders of the companies at some point incorporated a new company, transferred to it the activity of the companies and went public with such company. The investment banker claimed to be entitled to exercise the warrants in the new public company.
The Court held that while there is no rivalry with the new company, the emptying of the warrants by moving all the activity to the new company is in fact an act which contradict the agreements under which the warrants were issued and is thus a breach of contract. The compensation for such breach will be the value of the warrants that were in fact denied from the investment banker by such actions.