RE:RE:A penny a day keeps the shorts awaySilentbull wrote: Tilray is wanting Zenabis to let its subsidiary off the hook of the contractual obligations of 3rd party supply of cannabis for $30 million signed in June 2019. Trying to get arbitration to evade buying as TIlray results clearly show its revenues are declining. ZENABIS on the other hand has reiterated its position and decided to contest TIlray to honour the contractual obligations and buy for the pre paid amount. Zenabis might decide to extend the deliveries and stagger it over next few months
Dear Silentbull: I did check out Tilray on SEDAR as you pointed out and thanks for that image link. Zenabis is in a very strong position. Funds from Tilray were transferred to Zenabis last year and Zenabis is able and willing to fulfill obligations. Shai Altman will sort this out quickly with favorable result for Zenabis. Zenabis will be defending the claim and the proceeding is at an early stage.
Tilray is involved in 6 other legal disputes much larger than the Zenabis supply agreement.
Here is a cut and paste from Tilray's documents filed on SEDAR today:
TILRAY - August 10, 2020
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
420 Investments Ltd. Litigation
On February 21, 2020, 420 Investments Ltd., as Plaintiff (“420”), filed a lawsuit against Tilray, Inc. and High Park Shops
Inc. (“High Park”), as Defendants, in Calgary, Alberta in the Court of Queen’s Bench of Alberta.
Tilray, Inc. Reorganization Litigation (Delaware)
On February 27, 2020, Tilray stockholders Deborah Braun and Nader Noorian filed a class action and derivative complaint in
the Delaware Court of Chancery styled Braun v. Kennedy, C.A. No. 2020-0137-KSJM. On March 2, 2020, Tilray stockholders
Catherine Bouvier, James Hawkins, and Stephanie Hawkins filed a class action and derivative complaint in the Delaware Court of
Chancery styled Bouvier v. Kennedy, C.A. No. 2020-0154-KSJM. The two complaints are nearly identical, were filed by the same
group of counsel, and name Tilray as a nominal defendant.
Securities Litigation
On May 4, 2020, a lawsuit was filed by plaintiff Ganesh Kasilingam in the United States District Court for the Southern
District of New York, against Tilray, Inc., seeking
to recover damages for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Shareholder Derivative Lawsuits
On April 10, 2020, a shareholder derivative lawsuit was filed in the United States District Court for the Eastern District of
New York (EDNY) by Chad Gellner, Matthew Rufo, and Melvyn Klein, allegedly on behalf of Tilray, Inc., that piggybacks on the
Kasilingam litigation referenced above. It named the Board of Directors and Mark Castaneda as defendants. The theory of the lawsuit
was that the board failed to prevent the alleged securities law violations asserted in the Kasilingam litigation.
Wyckoff Arbitration
On February 16, 2020, Wyckoff Farms (“Wyckoff”), a cannabinoid supplier to Tilray, emailed a demand for assurance of
performance of the March 20, 2019 Cannabinoid Supply Agreement (“Supply Agreement”). Wyckoff stated that it believes that
Tilray has anticipatorily breached its obligations under the Supply Agreement, which contemplated a five (5) year term, with an
express minimum crop obligation during the first crop year from 2019-2020. Wyckoff demanded assurance that Tilray take delivery
of and purchase at least 13,000 KG of product for the 2019/2020 crop year at a price of $4,600 KG of product (total purchase price
$59,800,000). Wyckoff also raised additional concerns about purported additional minimum quantity purchase obligations for the
remaining crop years. Tilray responded that it is within its rights under the Supply Agreement, that the contract’s only minimum
purchase obligation is for the 2019 crop year, and also invoked the contractual force majeure provision in light of the impacts of FDA
regulatory uncertainty and FDA action related to hemp-derived CBD, as well as the COVID-19 pandemic.
Langevin Canada Class Action
On June 16, 2020, Lisa Langevin commenced a purported class action in the Alberta Court of Queen’s Bench, on her behalf
and on behalf of a proposed class of all medicinal and recreational users in Canada of the defendants’ cannabis products who
consumed the products before their expiry date. She alleges that the defendants, including Tilray, marketed medicinal and recreational
cannabis products in circumstances where the defendants misrepresented the amount of Tetrahydrocannabinol (THC) or Cannabidiol
(CBD) in their respective products. As a result of the defendants’ alleged mislabeling of the cannabis products it is claimed that the
plaintiff and proposed class members did not receive and consume the product that they believed that they had purchased and that this
caused them loss, risk of injury and actual injury. Ms. Langevin claims that on February 13, 2020 she purchased Canaca – TenUp
manufactured and distributed by Tilray. She had it tested and allegedly found that it only contained 46% of the claimed amount of
THC. The Statement of Claim seeks $500,000,000 in damages and restitution and $5,000,000 in punitive damages plus interest and
costs collectively from the defendants. On July 20, 2020 Plaintiff filed an Amended Statement of Claim, as well as an Amended
Amended Statement of Claim.