It seems Aurora Cannabis (TSX: ACB) (NYSE: ACB) has found itself in some hot water. It was announced this morning by CTT Pharmaceutical Holdings that a statement of claim has been filed against the cannabis giant in the Ontario Superior Court of Justice in relation to what amounts to a breach of contract related to sublingual cannabis-infused strips.
CTT Pharma is currently seeking compensation for Aurora’s denial of contractual commitments. The company has alleged that it is owed expenses, royalties, lost royalties and damages in connection with an agreement entered into in October 2019. Despite what is referred to as “rapid sales” CTT has claimed that Aurora has denied further resources for the partnership and has since claimed that the original agreement is no longer in force.
The original commercialization agreement was entered into between CTT Pharma and that of CanniMed, whom was subsequently acquired by Aurora. Following the acquisition, its stated that the two parties worked towards commercialization, with the first product run selling out within 60 days of launch.
To add further salt to the wound, the company has since appointed Dr Shane Morris, the former Chief Product Officer at Aurora to its advisory board.
Financial figures being sought in connection with the lawsuit were not released by the company. Aurora Cannabis has yet to respond to the announcement of the filing.
Aurora Cannabis last traded at $9.36 on the NYSE.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
