- News out -For you guys...thought I should pass it along:
Aurora Cannabis sued over $1.9-million option
2017-12-04 10:59 ET - Street Wire
by Mike Caswell
Aurora Cannabis Inc. is a defendant in a lawsuit filed in the Supreme Court of British Columbia over a stock option allegedly worth $1.9-million. A Nevada company claims that it received the option in a 2015 consulting agreement. It says that when it attempted to exercise that option, Aurora refused to allow the share issuance.
Details of the dispute are contained in a notice of claim filed at the Vancouver courthouse on Nov. 29, 2017. The lawsuit was filed by Electrum Partners LLC of Las Vegas. Electrum identifies itself as a consulting firm with expertise and contacts in the legal cannabis industry.
According to the suit, Electrum entered into a consulting agreement with Aurora on March 16, 2015. The agreement called for Electrum to provide Aurora with some sort of services (which the lawsuit does not describe). According to Electrum, as part of that agreement it received an option to buy 300,000 shares of Aurora at 39 cents. The consulting agreement ended after one year, but the option was to be exercisable for five years, or until March 16, 2020, Electrum claims.
The problem, as described in the suit, is that Aurora refused to allow Electrum to exercise the option. Electrum claims that it attempted to exercise the option on Nov. 16, 2017. It sent a cheque for $117,000, representing the full amount payable. According to the suit, Aurora advised both orally and in writing that it was repudiating the stock option.
The suit seeks reinstatement of the option or, alternatively, payment for the $1.9-million it was worth on the day the suit was filed. Vancouver lawyer Todd Kerr of Kerr Redekop Leinburd filed the lawsuit on behalf of Electrum.
Aurora has not yet filed a response to the suit. The company, which traded between 30 and 40 cents at the time of Electrum's alleged consulting agreement, closed at $7.52 Friday.
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