Sunniva Inc (CSE: SNN) has unsurprisingly found itself in further hot water as it relates to the courts. This morning the firm announced that it has been served with a notice of claim related to finders fees for the sale of Natural Health Services. The transaction, which closed last month for $9.0 million, was in the form of both cash and common shares.
The notice of claim was filed in the Supreme Court of British Columbia on December 30, 2019. The lawsuit was filed by IMK Management Services Inc, who reportedly entered a finders fee arrangement with Sunniva on January 28, 2019, in relation to the sale of Natural Health Services. Under that agreement, IMK alleges that it is owed a total of $472,500 for the sale of Natural Health Services to Cura-Can Health Corp.
If the Supreme Court rules in favour of IMK Management Services, Sunniva will find itself in a particularly bad position. The sale of NHS was originally to consist of $9.0 million equally split between cash and common shares of the purchaser. However, prior to closing the final terms were changed to consist of $250,000 in cash, with the remaining $8,750,000 to be paid out in the form of shares.
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The result, is that Sunniva may now potentially owe more cash than it received in the transaction thanks to the share valuation, leaving the firm in an even worse financial position than before.
Sunniva Inc last traded at $0.28 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.
