Medipharm Labs Sues HEXO for Breach of Contract
A disagreement between two Canadian cannabis companies is headed to court. Medipharm Labs (OTC: MEDIF) said in a tersely worded press release Friday that one of its subsidiaries has filed a legal claim against "a licensed producer" in the Ontario Superior Court of Justice.
Medipharm did not identify this party but did say that that "[t]he Claim relates to, among other things, the payment of outstanding amounts of approximately $9.8 million [Canadian dollars]."
This stems from a deal announced in Feb. 2019 with the "licensed producer," again not named, in which Medipharm's counterparty was to purchase roughly CA$35 million ($27 million) worth of cannabis oil concentrate from the company over the course of one year. "Licensed producer" also had an option to buy an additional CA$13.5 million ($10.3 million) of concentrate during the term of the deal.
Source Fool.com
