According to an article published yesterday on Stockwatch, Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) is "a defendant in a lawsuit filed in the Supreme Court of British Columbia over a stock option allegedly worth $1.9-million."
The article alleges that Electrum Partners LLC of Las Vegas, Nevada entered into a consulting agreement with Aurora on March 16, 2015 where "as part of that agreement it received an option to buy 300,000 shares of Aurora at 39 cents."
The consulting agreement terminated after a year, but the option was to be exercisable for five years, or until March 16, 2020, according to Electrum. Apparently, Electrum sent a $117,000 check to Aurora which represents the full amount, but then "Aurora advised both orally and in writing that it was repudiating the stock option."
Comment from Aurora
Since the article linked above seemed to cover Electrum's side of the story, we wanted to reach out to Aurora to hear the other side of it. Cam Battley, Executive Vice President of Aurora, commented:
"Aurora entered into a consulting agreement with Electrum in 2015, and Electrum was issued stock options. The agreement was subsequently terminated. In accordance with Aurora's stock option plan, the options expired 90 days after the termination. We have correspondence on file with Electrum's in house counsel repeatedly explaining this. Electrum did not exercise the options within 90 days, and they expired."
Mr. Battley concluded his statement saying, "In our opinion, this is a nuisance action, and we intend to defend the claim vigorously."
Not the Only Electrum Lawsuit
It should be noted that this is not the only lawsuit that Electrum is a part of right now. Back in October, New Cannabis Ventures reported that "Pamela Johnston, who joined Electrum Partners, a cannabis business advisory firm based in Nevada, as Senior Vice President Strategy & Special Projects in early 2016, has filed suit against the firm and Leslie Bocskor, who serves as Managing Partner."
The suit alleges “violations of the New York City Human Rights Law stemming from her wrongful and discriminatory discharge undertaken because she told her employer she was suffering from cancer and because she engaged in protective activity in reporting certain sexual activities taking place at Electrum.”
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