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by Mike Caswell
Isodiol International Inc., a would-be developer of CBD products, has filed a lawsuit in the Supreme Court of British Columbia to collect money owing from a deal to sell its BSPG Laboratories Ltd. subsidiary. Isodiol claims that the purchaser has failed to pay $2.25-million of the $14-million purchase price. (All figure are in U.S. dollars.) The company is seeking the court-ordered payment.
The lawsuit adds one more chapter to a venture Isodiol would undoubtedly prefer to leave behind. The company purchased BSPG and another entity for $43-million on April 17, 2018, satisfying most of the purchase price with shares. Less than a year later, Isodiol abruptly sold BSPG, in the process recording a $19-million loss on the business. In entering the "bittersweet" transaction, Isodiol chief executive officer Marcos Agramont cited problems raising money for BSPG.
The transaction looked to be the end of BSPG for Isodiol, until the present lawsuit. On Dec. 31, 2020, Isodiol filed a notice of claim against the buyer at the Vancouver courthouse. The sole defendant is Brain Bioceutical Corp., which had agreed to purchase BSPG on March 29, 2019. The problems, as set out in the suit, stemmed from staged payments that were to be completed by Sept. 30, 2020.
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