RE:Beacon drops target - cantechletter.com "Anybody know anything about this lawsuit? Gravitas appears to have raised money for the company."
From page 44 of DOC's Financial Statements dated December 31, 2022 which can be found on SEDAR:
(I believe the dollar figures are presented in thousand-dollar multiples,so the $9,458 likely represents around $9.46M).
20. LITIGATION AND OTHER CONTINGENCIES
During the three months ended June 30, 2020, Gravitas Securities Inc. (“Gravitas”) commenced an arbitration alleging breach of the terms of a right of first refusal in connection with an offering which was in the form of a bought deal equity financing underwritten by a syndicate of other investment banks in May 2020 and was completed on June 2, 2020 (the “June 2020 Financing”). During the three months ended September 30, 2020, Gravitas amended its claims for damages to include commissions and damages arising from an additional bought deal equity financing which was completed on September 22, 2020 (the “September 2020 Financing”). During the three months ended June 30, 2021, Gravitas amended its claim for damages to include commissions and damages arising from an additional bought deal equity financing which was completed on March 12, 2021 (the “March 2021 Financing”). In May 2022, Gravitas amended its claim for damages to include commissions and damages arising from an additional bought deal equity financing which was completed on November 9, 2020 (the “November 2020 Financing”). The total claims are in excess of $9,458 plus unspecified damages associated with the value of share purchase warrants that were issued in connection with the June 2020 Financing, the September 2020 Financing, the November 2020 Financing, and the March 2021 Financing, plus interest and cost.
The Company disputes the claims with respect to the June 2020 Financing, the September 2020 Financing, the November 2020 Financing, and the March 2021 Financing entirely. The claims are currently subject to arbitration proceedings which the Company is defending, and the arbitration hearing was completed in February 2023. The Company is of the view that its defense to the claims will prevail without liability to the Company; however, an estimate of the liability to the Company should the Gravitas claims succeed is $1,200 and therefore an accrual for that amount as a contingent liability has been recorded.