GREY:BLITF - Post by User
Post by
muchogustoon Aug 24, 2017 4:03pm
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Post# 26618755
[NEWS from the MD&A released today]
[NEWS from the MD&A released today]
1) GRABASA is GONE !!!
For the nine months ended July 31, 2017, the Company incurred a net loss of $1,475,043 (2016 $633,840). The increased loss was primarily caused by writing off the deposit on the Grabasa assets and expensing the success fee for the Grabasa assets. There were also higher costs for financing and legal fees relating to the Grabasa acquisition. The additional costs were partially offset by lower costs for share based compensation
Grabasa Assets (Spain) Following the Companys failed acquisition of the Grabasa Assets, Eureka Trading filed an action against the Company in the courts in Spain. Eureka Trading was seeking a success fee associated with their alleged assistance of the Company acquiring the Grabasa Assets. The courts in Spain have ordered the Company to make a payment of 575,000 to Eureka Trading.
In addition, the Company had to provide a 150,000 deposit to the courts in Spain when they were granted the right to acquire the Grabasa Assets. The total cost of the acquisition was to be 2,700,000. When the Company failed to secure financing and the ability to acquire was terminated, the Company was required to forfeit that deposit.
The Company is no longer pursuing the Grabasa Assets.