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GrowMax settles with Lau, to pay $700K (U.S.)
2020-09-02 10:10 ET - News Release
An anonymous director reports
GROWMAX PROVIDES CORPORATE UPDATE
GrowMax Resources Corp. has provides an update.
Change of Business
On April 28, 2020, the Company announced that it received conditional approval from the TSX Venture Exchange (the "TSXV") of the previously announced proposed change of business from mineral exploration to an investment issuer (the "Proposed COB") under the policies of the TSXV. The Proposed COB was announced by GrowMax in a press release issued on July 11, 2019 and further described in its press release issued on August 27, 2019.
The Company has fulfilled all the TSXV conditional approval requirements including the appointment of two additional independent directors.
However, in May 2020, the Company's former auditor, PwC, informed the Company that it has denied consent to the use of their name or use in whole or in part, of the financial statements on which they provided an opinion for the years ended December 31, 2017 and 2018 in the listing statement.
The Company is working diligently with the TSXV and BC Securities Commission to resolve this issue. Until resolved, trading in the Company's shares remains halted.
Settlement of litigation
The Company also announces that it has come to a settlement with Jorge Lau Yook ("Lau"). On December 10, 2019, the Company announced that Lau made a claim in the Alberta Court of Queen's Bench against the Company for payments purportedly owing under a Rights Transfer Agreement made between the Company, its Peruvian subsidiary and Lau.
The Company filed both a statement of defense and a counter-claim. In its statement of defense, the Company denied any indebtedness to Lau. Additionally, the Company was also seeking damages against Lau for money, assets and resources wrongfully taken, used or misappropriated and damages for loss of corporate opportunities.
The settlement agreement requires that, among other things, Lau terminate his claim made in the Alberta Court of Queen's Bench and terminate any and all claims made against the Company or its Peruvian subsidiary in Peru. The Company is required to make a lump-sum payment of $700,000 USD to Lau and terminate its counterclaim filed against Lau.