This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Evergreen Medicinal Supply Inc. says that a lawsuit it faces in the Supreme Court of British Columbia from Cronos Group Inc. is "disingenuous and opportunistic." The suit, in which Cronos claims to have an agreement to buy a 25-per-cent interest in Evergreen, is based upon a non-binding letter of intent. The suit also came only after Evergreen obtained a licence to grow marijuana from Health Canada.

The statements by Evergreen come in response to a notice of claim that Cronos filed on April 21, 2017, at the Vancouver courthouse. Cronos said that the companies made an agreement in 2014 in which Cronos would invest $1.2-million in Evergreen in return for a 25-per-cent interest in the company. According to the suit, Cronos made the initial $300,000 payment under the deal and then lent additional money to Evergreen. Despite those efforts, Evergreen refused to honour the agreement, the suit claimed.

For its part, Evergreen says that there never was a definitive agreement between the companies. In a response filed on May 18, 2017, Evergreen claims that the document the parties executed was a non-binding letter of intent. It contained a paragraph (in block letters) which specifically stated that there were no legal obligations.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS