1167025 B.C. Ltd, a subsidiary of Sunniva Inc (OTCMKTS:SNNVF), terminated the sale of its Okanagan Falls Property with an independent real estate. The company earlier signed an accord to divest its Okanagan Falls property for CAD 6.8 million.
The deal is subject to a waiver of certain conditions by the buyer. As per the initially entered pact, the deal expects to close on or before August 10, 2020. But, on July 3, 2020, the company said it did not receive the required waiver conditions as of July 2, 2020, and the purchaser decided not to proceed with the deal.
PTI Transformers files a lawsuit
Plaintiff (PTI Transformers Inc) filed a lawsuit in the Supreme Court to recover dues of CAD 2.2 million from Sunniva Medical Inc (SMI). As per the terms of the contract entered on February 27, 2018, Plaintiff needs to supply and install two (electrical) substations at Okanagan facility in British Colombia.
The claimant requests court intervention to get its dues along with interest. Sunniva filed a claim of notice on behalf of its subsidiary – SMI.
As per the prevailing rules, the company needs to submit a claim of notice within 21 days of filing a lawsuit in the court.
BCOSC serves a CTO
The BCOSC (British Colombia and Ontario Securities Commission) issued a cease trade order (CTO) to Sunniva because of the non-filing of annual financial statements.
As per the BCOSC legislation, Sunniva needs to file the audited financial statements for 2019. It is also obligated to submit management discussion and analysis for audited financial statements for the year 2019.
Sunniva securities are prohibited for trading by any company or person in British Colombia or any other territory of Canada until the CTO is revoked. However, it is with certain exemptions.
All the financial statements are prepared by Sunniva. The company waited for the waiver of certain conditions for the sale agreement signed on June 8, 2020, to divest its Okanagan Falls property. It can commence the audit of financial statements by engaging the auditors because property sale is terminated citing non-receipt of waiver by the acquirer.
CPL reverses transaction agreement
CPL (CP Logistics, LLC), a subsidiary of Sunniva, reversed the transaction agreement entered on April 29, 2019. The company clinched 80% membership stake in Coachella and 420 Distribution LLC. Following the reversal of the transaction, the company will relinquish its membership interest and stop the operations at a distribution facility.