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by Mike Caswell
Transcanna Holdings Inc., one of many marijuana listings to have appeared on the Canadian Securities Exchange in recent years, has filed a lawsuit in the Supreme Court of British Columbia after paying $904,000 for market-making services that it claims to have never received. The company says that it hired Umbrella Capital Group Ltd. as a market-maker and prepaid fees for one full year. It later found out that Umbrella was not legally able to provide such services, the suit states.
The allegations are contained in a brief notice of claim that Transcanna filed on Dec. 10, 2019, at the Vancouver courthouse. The sole defendant is Umbrella Capital, a company that has an office in Toronto and is run by a man named Mykal Johncox. (The suit says little else about Umbrella. On Twitter, it gives itself a rather vague description, saying that it provides merchant banking and strategic advisory services.)
The problems, as set out in the suit, arose from an agreement that Transcanna entered into with Umbrella on May 23, 2019. Umbrella was to be a market-maker, initially at a price of $30,000 per month, for a period of three months. According to the suit, Transcanna agreed to hire Umbrella after that three-month period, but at much higher rates, prepaying $904,000 for one year of service.
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