I wonder if this is one of the reasons Pakulis lmight have been forced out. What is with all the law suits going back and forth?
This from Stock Watch
Transcanna sues Umbrella Capital for $904,000
2019-12-12 14:16 ET - Street Wire
by Mike Caswell
Transcanna Holdings Inc., one of many marijuana listings to have appeared on the Canadian Securities Exchange in recent years, has filed a lawsuit in the Supreme Court of British Columbia after paying $904,000 for market-making services that it claims to have never received. The company says that it hired Umbrella Capital Group Ltd. as a market-maker and prepaid fees for one full year. It later found out that Umbrella was not legally able to provide such services, the suit states.
The allegations are contained in a brief notice of claim that Transcanna filed on Dec. 10, 2019, at the Vancouver courthouse. The sole defendant is Umbrella Capital, a company that has an office in Toronto and is run by a man named Mykal Johncox. (The suit says little else about Umbrella. On Twitter, it gives itself a rather vague description, saying that it provides merchant banking and strategic advisory services.)
The problems, as set out in the suit, arose from an agreement that Transcanna entered into with Umbrella on May 23, 2019. Umbrella was to be a market-maker, initially at a price of $30,000 per month, for a period of three months. According to the suit, Transcanna agreed to hire Umbrella after that three-month period, but at much higher rates, prepaying $904,000 for one year of service.
Transcanna claims that Umbrella took the money and then did nothing. Specifically, it did not provide the market-making services it was supposed to. Within weeks, Transcanna terminated the agreement and demanded the return of its money. According to the suit, Umbrella refused.
Transcanna says that it has since learned Umbrella is not legally able to perform market-making services. It is not a member of the Investment Industry Regulatory Organization of Canada. It is also not registered with the CSE as a dealer.
The suit seeks the court-ordered payment of $904,000. Vancouver lawyer Lisa Ridgedale of Hakemi & Ridgedale LLP filed the suit on Transcanna's behalf. Umbrella has not yet filed a response.