Gaucho Group Holdings Faces Notice of Default on Convertible Promissory Note

Gaucho Group Holdings, Inc. (NASDAQ:VINO), engaged in fine wine e-commerce, luxury real estate and leather goods, has been notified of default by 3i, LP regarding a promissory note convertible issued on February 21, 2023. The request is for an immediate payment amounting to at least $3,437,645.74.

The company disputes the validity of the documents related to the note, citing 3i, LP's lack of registration as a dealer under the Securities Exchange Act of 1934. As a result, Gaucho filed suit, seeking to overturn transactions carried out under this agreement.

The issue of registration of traders has been a focal point of regulatory actions and litigation, with several courts finding that registration is necessary for the validity of transactions carried out. Gaucho perceives the notice of default as retaliation for his complaint.

Gaucho CEO Scott Mathis reaffirms his commitment to transparency and protecting shareholder values, seeing the litigation as an opportunity to protect investments from illegal dilution.