What’s one more kick to the gut when you’re already down? Sunniva Inc (CSE: SNN) shareholders are about to find out the answer to that question shortly, after the firm announced late this evening that it has been named in yet another lawsuit. This time, it’s in relation to the sale of Natural Health Services to that of Cura-Can Health Corp.
While short on details, Sunniva revealed this evening that it has been named in a lawsuit filed by that of Cura-Can in relation to the sale of Natural Health Services, Sunniva’s former chain of compassionate clinics. The lawsuit alleges that Sunniva misrepresented the extent of the ongoing investigations related to a privacy breach that occurred at NHS between December 2018 and January 2019.
A lawsuit was filed by that of Cura-Can with the Court of Queen’s Bench of Alberta on February 20, 2020. The lawsuit is seeking damages from Sunniva in relation to the misrepresentations made on the matter. Sunniva intends to defend the claim.
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The transaction between Cura-Can and Sunniva closed on December 18, following a delayed closing and revised terms. Sunniva ultimately received $9.0 million for the business unit, however the sale consisted of $0.25 million in cash, with the remainder being paid via the issuance of 7,000,000 common shares in Cura-Can’s equity. Sunniva was then subsequently sued in relation to unpaid finders fees in the amount of $472,500.
Sunniva Inc last traded at $0.22 on the CSE.
Information for this briefing was found via Sedar and Sunniva Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
