Windfire Capital (
TSX:V.WIF,
Stock Forum) has been sucked into a legal dispute as a private Osoyoss B.C. grow company alleges it had a lease usurped by Windfire, despite a deal to work together.
Phytotron Pharmaceuticals, a private grow company, says it secured a venue and a group to run the space, reaching a verbal agreement on a three year lease and submitting an MMPR application to grow.
It alleges Wildfire then did a side deal for the space.
From Stockwatch:
It appears from the suit that all went well until April 10, 2014, when Phytotron contacted the owner of the space to sign the lease and to make its agreed upon deposit of $36,000. According to the suit, Phytotron then learned that Mr. Massey and an associate, Jamie Hyland, had taken one of the owners of the site out to dinner the previous evening and had induced him into leasing the space to Windfire. Moreover, Mr. Massey had purported to be an agent for Phytotron, the suit states.
Phytotron is asking for court orders that would effectively grant it a lease over the space. It is also seeking damages for breach of contract and for intentional interference with economic relations.
Whether or not the case has merit, this is the sort of situation that deflates a company’s investor base.
Windfire shed 14.2% on the news, which it did not release publicly.
UPDATE:
Clarification from Windfire:
WINDFIRE CLARIFIES STOCK WATCH PRESS REPORT
Windfire Capital Corp. would like to clarify the news reported in Stockwatch on May 1, 2014. Windfire previously secured a building lease as a prerequisite to exploring a possible transaction with a private company in the medical marijuana industry. Windfire advanced a $36,000 deposit to secure the building in the event that a transaction materialized. However, the parties never reached a final agreement in principle, and all discussions have ceased. The litigation reported by Stockwatch was dismissed on April 30, 2014, one day after it was commenced. The lease was assigned to the private company after Windfire was reimbursed for its $36,000 deposit on the lease.
Windfire continues to work on other opportunities in the medical marijuana sector where such activity is licensed and/or permissible North America-wide. When and if an agreement in principle is reached to complete a change-of-business transaction in the medical marijuana industry, full details will be provided in accordance with TSX Venture Exchange policies.
Bayhorse Silver (
TSX:V.BHS,
Stock Forum) spin-off Silcom Systems has entered into
two option agreements to acquire 100% interest in two Quebec gold properties. The holdings stretch approximately 15,000 hectares and feature no grow houses. Maybe some gold though.
Full disclosure: Bayhorse is a Stockhouse Publishing client, because it knows how to market, yo.
Supreme Pharmaceuticals (
CSE:C.SL,
Stock Forum) today outlined a ‘roll-up plan’ for their business, in which they appear to be looking to option small players rapidly to increase the chances they’ll get a Health Canada MMPR license for one of them.
According to a
fluffertorial today, Supreme says “We are excited to be purchasing a business that is established and has a realistic chance of acquiring a major MMPR commercial license from Health Canada." The piece goes on to explain, “Supreme plans to acquire multiple producing facilities and apply for several separate MMPR licenses increasing the company's chances of a successful application.”
Canadian film producers do this a lot, taking out cheap options on ten or twelve screenplays at a time, while they sit back and wait for one of them to get government funding and suddenly become live.
It may prove a profitable play for Supreme, but I wonder how the optioned growers feel to hear the company interested in buying them is spreading his chips across the table, rather than focusing on their play directly?
Either way, Supreme is up 50% today.
PMX Communities (
OTXQB:PMXO,
Stock Forum) is undergoing final testing on its new PMX LXIV Bud Box cannabis sales terminal. Translated:
They’ve got a vending machine.
“The PMX cannabis terminal is complete and it is undergoing final testing as the company prepares one of their machines to hopefully be deployed to the western United States,” said a company release. “The approval on child resistant exit product packaging should be finalized in the next few weeks. All products that will be purchased from the cannabis terminal will be tested to ensure a first-rate consumer experience at the PMX LXIV Bud Box.”
Could it be long before we see eight-balls being sold in coke vending machines?
Just kidding, don’t get excited, brokers.
But DO get excited about my piece on
Papuan Precious Metals’ CEO Dev Randhawa from early today.
It’s a beauty.
UPPERS:
Affinor Resources (
CSE:C.AFI,
Stock Forum) rose 29.4% today on no news, continuing an upward trend.
Jourdan Resources (
TSX:V.JOR,
Stock Forum) won back its losses from yesterday in slim trading.
DOWNERS:
Lexaria (
CSE:C.LXX,
Stock Forum) was slayed in trading, dropping 31% with minimal volume.
IN BRIEF:
Abattis (
CSE:C.ATT,
Stock Forum) is having a Vancouver meet and greet today at the Terminal City Club Metropolitan Room. Can’t make it myself but our Gaalen Engen will be there and hopes to put out a profile tomorrow. Georges Laraque will be speaking.
Pan American Fertilizer (
TSX:V.PFE,
Stock Forum) has completed the acquisition of the Uruguay-based Exumer Corporation. PFE CEO Randy Wright will take over as Exumer’s CEO. Meanwhile, PFE will be delaying the filing of 2013 financials, based, it says, on the heightened activity of the company of late.
THE MOVERS: