Sunniva Sued for $472,500 in Finders Fees for Natural Health Services Sale

Sunniva Inc (CSE: SNN) has unsurprisingly found itself in further hot water as it relates to the courts. This morning the firm announced that it has been served with a notice of claim related to finders fees for the sale of Natural Health Services. The transaction, which closed last month for $9.0 million, was in the form of both cash and common shares.

Sunniva Inc's Logo

The notice of claim was filed in the Supreme Court of British Columbia on December 30, 2019. The lawsuit was filed by IMK Management Services Inc, who reportedly entered a finders fee arrangement with Sunniva on January 28, 2019, in relation to the sale of Natural Health Services. Under that agreement, IMK alleges that it is owed a total of $472,500 for the sale of Natural Health Services to Cura-Can Health Corp.

If the Supreme Court rules in favour of IMK Management Services, Sunniva will find itself in a particularly bad position. The sale of NHS was originally to consist of $9.0 million equally split between cash and common shares of the purchaser. However, prior to closing the final terms were changed to consist of $250,000 in cash, with the remaining $8,750,000 to be paid out in the form of shares.

The result, is that Sunniva may now potentially owe more cash than it received in the transaction thanks to the share valuation, leaving the firm in an even worse financial position than before.

Sunniva Inc last traded at $0.28 on the CSE.


Information for this briefing was found via Sedar and Sunniva Inc. 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.

Video Articles

Gold’s Next 12 Months Will Be the Trade of a Lifetime | Simon Marcotte – Northern Superior

Will The Government Will Quietly End The Dollar Using Gold | Andy Schectman

The Japanese Gold Mining Advantage | John Proust – Japan Gold

Recommended

Nova Scotia Bans Forest Access to Prevent Wildfires

Cardiol Therapeutics Releases Positive Topline Results From Phase II Clinical Trial

Related News

Barker Pacific Sees Court Order Denied for Sunniva Asset Seizure

Sunniva Inc (CSE: SNN) released its first goods news in ages this morning. The ex...

Wednesday, December 18, 2019, 09:16:52 AM

Sunniva Closes Sale of Natural Health Services for $0.25 Million in Cash, $8.75 Million in Private Equity

Sunniva Inc (CSE: SNN) has finally closed a sale of some of its Canadian assets....

Thursday, December 19, 2019, 08:34:21 AM

Sunniva Secures Short Term Loan

Sunniva Inc (CSE: SNN) provided a small update related to its liquidity position this morning,...

Thursday, February 20, 2020, 08:48:34 AM

Sunniva: An Undercovered Bi-National Opportunity

With the recent news that the Trump administration has vowed to respect state level cannabis...

Thursday, April 26, 2018, 07:00:24 AM

Sunniva Reverses Transactions, Ceases Extraction Operations

It seems that Sunniva Inc (CSE: SNN) is pretty well at the end of the...

Monday, June 15, 2020, 08:08:42 AM