Mr. Brent Zettl reports
CANNIMED THERAPEUTICS INC. LAUNCHES $725 MILLION LAWSUIT ALLEGING MULTIPLE CLAIMS OF WRONGDOING RELATED TO AURORA HOSTILE BID
CanniMed Therapeutics Inc. filed a lawsuit today in the Ontario Superior Court of Justice, alleging
breach of confidentiality, intentional interference with economic
relations, conversion, breach of contract and other allegations pursuant
to the Securities Act (Ontario). The lawsuit also alleges that
Aurora Cannabis Inc., several large shareholders of
CanniMed (Golden Opportunities Fund Inc., SaskWorks Venture Fund Inc.,
Apex Investment Limited Partnership and Vantage Asset Management Inc.),
Westcap Mgt. Ltd., PFM Capital Inc., Canaccord Genuity Group Inc. and
others participated in a civil conspiracy intended to injure the
economic interests of CanniMed.
Additionally, CanniMed is seeking personal damages against one current
and one former member of the CanniMed board, Doug Banzet and Robert
Duguid, for their alleged involvement in the civil conspiracy and for
breaching their fiduciary duties by failing to act in the best interests
of CanniMed and its shareholders and instead acting out of self-interest
and/or for the benefit of other corporations, for which they are also
directors. Mr. Banzet is the chief financial officer of Golden Opportunities Fund and chief operating officer of
Westcap Mgt. Mr. Duguid is founding partner of SaskWorks Venture Fund,
partner at PFM Capital and vice-president, investments, at Apex
The action (which has yet to be served) claims damages in the amount of
$725-million resulting from the defendants' unlawful actions that have
negatively affected the appreciation of the value of the common shares of
CanniMed and prevented CanniMed from pursuing alternative change-of-control transactions for the benefit of CanniMed shareholders.
"Aurora knew, or should have known, that the information obtained and
utilized to design and launch their hostile bid was obtained
inappropriately. As a result of Aurora's use of this confidential
information, CanniMed shareholders have been disadvantaged and deprived
of seeing the full value of their shares. These bad actors, working in
concert, have done the company and other shareholders a significant
disservice, and we can't let them get away with this. I urge all
shareholders not to tender to Aurora's hostile bid and to vote yes
(green) for CanniMed's acquisition of the Newstrike Resources Ltd.,"
said Brent Zettl, president and chief executive officer, CanniMed.
Vote green. Do not tender.
The CanniMed board and management will vote their green proxies in
support of CanniMed's acquisition of Newstrike Resources and will not tender to Aurora's bid. The board
strongly recommends shareholders join them in doing the same, no matter
how many shares are owned. Here's how:
- To vote for the Newstrike acquisition, vote green. Follow the
instructions on the green VIF (voting instruction form) or form of proxy by Jan. 19, 2018, at
10 a.m. EST. Shareholders with questions or need help voting should
contact Kingsdale Advisors by calling toll-free at 1-888-518-1554 or by e-mailing at email@example.com.
- Ignore and recycle any blue proxy forms received.
- To reject Aurora's bid, simply do nothing. Do not tender your shares.
If you have tendered your shares in error or now wish to withdraw,
simply ask your broker or Kingsdale Advisors at 1-888-518-1554 or firstname.lastname@example.org
to assist with this process.
Shareholders are also encouraged to visit the Newstrike not Aurora website for more details.
About CanniMed Therapeutics Inc.
CanniMed is a Canadian-based, international plant biopharmaceutical
company and a leader in the Canadian medical cannabis industry, with 17
years of pharmaceutical cannabis cultivation experience,
state-of-the-art, GMP-(good manufacturing practices)-compliant production process, and world-class
research and development platforms with a wide range of
pharmaceutical-grade cannabis products. In addition, the company has an
active plant biotechnology research and product development program
focused on the production of plant-based materials for pharmaceutical,
agricultural and environmental applications.
CanniMed, through its subsidiaries, was the first producer to be
licensed under the Marijuana for Medical Purposes Regulations,
the predecessor to the current Access to Cannabis for Medical
Purposes Regulations. It was the sole supplier to Health Canada
under the former medical cannabis system for 13 years, and has been
producing safe and consistent medical cannabis for thousands of Canadian
patients, with no incident of product diversion or recalls.
We seek Safe Harbor.
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