Lomiko Metals (TSX: V.LMR, Stock Forum) found itself in a legal wrangle when the company announced two days ago that it had been served with a Notice of Civil Claim by Alpha Capital Anstalt filed in the Supreme Court of British Columbia on August 6, 2014.
According to the news release, the legal action stemmed from a contractual dispute involving a subscription and ratchet agreement signed between the company and Alpha Capital.
The suit involved Alpha seeking damages or as an alternative, the issuance of 3.33 million common shares and a reduction in the warrant excise price for a further 5.0 million common shares at $0.06 per share along with other ancillary relief.
The company voiced its intentions to defend itself vigorously against the claims, but never stated whether the suit was without merit.
Lomiko Metals was in the news recently when the company announced upping its stake in Graphene 3D three days ago.
Shares were down 13.33% to $0.065 per share.
Currently there are 136.6m outstanding shares with a market cap of $8.9 million.