On March 4, 2019, Veritas Pharma Inc., filed a Notice of Claim against the Company for recovery of a loan of $1 million. October 13th, 2018, the terms of repayment of the loan were settled. Veritas by filing the Notice of Claim has reneged on the repayment terms.
Veritas had claimed that they were a discovery and development company, advancing the science behind medical marijuana. They brought together a highly accredited team of pharmacologists, anesthetists and chemists with substantial success in both academia and industry, specifically in drug development. They had a laboratory at the University of British Columbia (UBC) where they were applying a comprehensive scientific approach to medical marijuana claims.
Veritas’s mission has been to develop the most effective proprietary cannabis strains for specific disease conditions and to provide doctors and patients with conclusive science evidence to recommend and use medical marijuana with confidence.
We believed in the Veritas business model and the beneficial synergy between our companies. As a result, in 2017, we provided capital to Veritas to execute their business plan by investing $1,350,000 CDN through two private placements. The Company acquired shares and share purchase warrants of Veritas for support and investment purposes and still retains significant securities of Veritas.
The Company will be filing a response to the Notice of Claim filed by Veritas.
“We had anticipated a mutual settlement agreement between us. We are extremely disappointed with the deterioration of the relationship between our companies. We share mutual values, ethics and research goals in this shared cannabis space. It would have been our preference to reach an agreement and to move forward amicably.“ Rahim Mohamed, CEO
ABOUT LIHT CANNABIS CORP.
Liht Cannabis Corp. is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Liht has rapidly expanded to include cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California, and are seeking expansion opportunities worldwide.
Liht trades in Canada, ticker symbol LIHT on the CSE, in the United States, ticker symbol LIHTF on the OTCQX.
MARIJUANA INDUSTRY INVOLVEMENT:
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate.
Liht owns marijuana licenses in California and Nevada. Marijuana is legal in each state however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Liht’s ability to access private and public capital could be affected and or could not be available to support continuing operations.
Liht’s business is conducted in a manner consistent with state law and is in compliance with licensing requirements.
Copies of licenses are posted on Liht’s website. Liht has internal compliance procedures in place and has compliance focused attorneys engaged in jurisdictions to monitor changes in laws for compliance with US federal and state law on an ongoing basis. These law firms inform any necessary changes to our policies and procedures for compliance in Canada and the US.
Featured image courtesy of Uptick News.