(February 14, 2020) Morganti & Co. has been retained by multiple investors that held shares of Newstrike Brands Ltd. (“Newstrike”) to advance a statutory and the related common law claim against HEXO Corp.
The claim alleges that HEXO Corp. induced Newstrike investors to rely upon misrepresentations about HEXO Corp.’s Quebec Supply Agreement in making the decision to vote in favour of exchanging their shares in Newstrike for shares of HEXO. In particular, the Newstrike investors allege that had the management circular contained all the material facts, e.g., otherwise been truthful, they would not have voted in favour of the transaction or would have demanded all cash.
The claim is on behalf of former Newstrike investors, only.
On February 14, 2020, the claim was issued and assigned the court number 20-cv-63692-00CP.