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by Mike Caswell

Lotus Ventures Inc., a thinly traded cannabis listing on the Canadian Securities Exchange, has been named in a lawsuit filed in the Supreme Court of British Columbia by its recently resigned chairman, Albert Duwyn. The suit claims that Lotus borrowed $1-million on the premise that it needed the money to pay a tax debt and that its cash flow was improving. Lotus then failed to repay the loan, and did so while making payments to the company's president and his wife, the suit states.

The allegations are contained in a notice of claim filed at the Vancouver courthouse on Oct. 19, 2023, by a numbered Ontario company that Mr. Duwyn controls. In addition to Lotus, the suit names as a defendant the company's president, Dale McClanaghan. The suit arises from a $1-million loan that Lotus took out in January, 2023, from Mr. Duwyn's company. According to the suit, Mr. Duwyn agreed to the loan on the basis that it would be secured by Lotus's inventory, and that the company would immediately use any proceeds from inventory sales to repay the money.

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