RE:RE:RE:RE:Now What?
This is disclosed in the latest MD&A. I quote:
On April 18, 2018, a third-party individual (the "Plaintiff) filed a claim against the Companys Lender, the Company, and its wholly owned subsidiary, Tanager Energy (USA) Inc., as defendants, (the Tanager Defendants) in a Dallas, Texas court. The Plaintiff's claims against the Tanager Defendants arise from alleged fraudulent representations and omissions which induced the Plaintiff, to make investments and loans, directly or indirectly, to the Company. The total amount of recoupment sought by the Plaintiff is US$3,775,000.00. The Plaintiff is also seeking unspecified amounts for legal fees, pre and post judgement interest at the highest rate allowed by law, and unspecified exemplary damages. The Plaintiff has sued the Lender for fraud, fraud by non-disclosure, and statutory fraud. Plaintiff has sued the Tanager Defendants for money had and received and seeks relief in the form of a declaratory judgment that 21,000,000 common shares and 21,000,000 share purchase warrants, originally issued in December 2016, (Notes 11, 13 and 17 of the consolidated financial statements) should be issued in the name of the Plaintiff instead of the Lender. The Company denies all allegations and claims for relief and intends to vigorously defend the claims filed against them by the Plaintiff. While the Company believes this claim to be without merit, US$3,775,000 of amounts claimed are already recognized as a liability under the Credit Facility (Note 11 of the consolidated financial statements), although the timing of repayment of this amount would change and may all become current if the Company is unsuccessful in its defense. The outcome of this matter is not determinable at this time.