Just days after a former chairman of the board of LumaStream Inc. filed a lawsuit against the company, the issue has been resolved.
LumaStream, a St. Petersburg company that makes LED lighting systems for homes and businesses, has an agreement in principle to settle the breach of contract complaint filed by former chair John Glasscock, said Eric Higgs, founder and current board chair.
In a statement, Higgs credited Glasscock with helping the company grow. (See the full statement below.)
The lawsuit came at a time when LumaStream’s business is going strong. Order volume is up 80 percent year over year, Higgs said. The company raised $730,000 in a Series B capital raise late last year and was valued at $55.7 million. The company also was granted a patent last year for technology that connects low-voltage lighting systems to an Internet of Things infrastructure. It’s the most recent of some two dozens patents at the company, founded in 2009.
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In the complaint, Glasscock said he loaned the company $3 million through a promissory note issued May 9, 2016. The note had a maturity date of May 9, 2019, when principal and interest was due on demand. LumaStream had not paid the money back by July 3, when Glasscock filed the lawsuit in Pinellas County Circuit Court.
The company owed Glasscock $3.7 million, which included 8 percent accrued interest, according to a default notice and payment demand filed with the complaint. Glasscock also said he was demanding payment of $79,000 from a separate promissory note.
“We have an agreement in principle for resolution of this situation to the benefit of all stakeholders,” Higgs’ statement said. “Along with the other investments, and the support of the Saint Petersburg/Tampa community in the past, John Glasscock’s loan helped us grow over the years for which we are very grateful. LumaStream is in the strongest market position in the company’s history with 80% increase in orders over Q1 and Q2 of 2018.The market is beginning to rapidly adopt our revolutionary technology after many years of work and sacrifice.”