A Vancouver-based law firm says it has filed a proposed securities class-action lawsuit on behalf of anyone who acquired shares in a B.C. company that recently announced plans to commercialize cocaine.
Adastra Labs CEO Michael Forbes released a statement on Feb. 22 saying the company would B次元官网网址渆valuate how the commercialization of (cocaine) fitsB次元官网网址� with the firmB次元官网网址檚 business model.
The company revised the statement on March 3 after both Premier David Eby and Prime Minister Justin Trudeau expressed astonishment about those plans, which stemmed from AdastraB次元官网网址檚 mid-February licence amendment to produce, sell and distribute cocaine.
Health Canada confirmed the amendment allows Adastra to produce no more than 250 grams of cocaine in 2023, and none can be sold to the general public.
The lawsuit, which contains allegations that have not been proven in court, contends Adastra and Forbes violated the B.C. Securities Act by making B次元官网网址渋naccurate public representationsB次元官网网址� that artificially boosted the companyB次元官网网址檚 stock price.
Adastra shares, valued at 75 cents on Feb. 22, peaked at $1.33 on March 3 before tumbling to a low of 42 cents on March 8 and the proposed class action is on behalf of those who acquired Adastra common shares between Feb. 22 and March 3.
Saro Turner, a partner at Slater Vecchio LLP, the firm behind the proposed class action, says investors deserve compensation.
B次元官网网址淲hen companies make misrepresentations like this, itB次元官网网址檚 usually the investors who trusted them that get hurt the most,B次元官网网址� Turner says in the statement.
On the same day Adastra retracted its commercialization statement, Eby said he had spoken to the federal government and was B次元官网网址渇urther disturbedB次元官网网址� to hear from Health Canada that Adastra may have B次元官网网址渟ignificantly misrepresented the nature of the licenceB次元官网网址� in an irresponsible manner.
Health Canada said it had contacted the company to B次元官网网址渞eiterate the very narrow parameters of their licence,B次元官网网址� and warned it could take action, including revoking the licence, if strict federal requirements were not followed.
