TORONTO — August 25, 2023 – Law firm Berger Montague (Canada) today announces that the Ontario Superior Court of Justice (the “Court”) has scheduled a hearing to be held on November 14, 2023 at 10 am by videoconference (the “Settlement Approval Hearing”) to approve a settlement among all of the parties to the class proceeding styled as Daniel Relvas v. Auxly Cannabis Group Inc., bearing Court File No. CV-19-00617136-00CP (the “Action”).
Background
The Action was commenced on behalf of persons and entities who purchased or otherwise acquired Auxly Cannabis Group Inc. common shares in the secondary market, on or after November 12, 2018, and held some or all of those securities until the close of trading on February 6, 2019. In the Action it is alleged that during the Class Period, the Defendant made misrepresentations concerning material facts regarding the status of its project with FSD Pharma Inc. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario. The Defendant denies the allegations and makes no admission of liability in connection with the Settlement.
At the conclusion of a full-day mediation in July 2023, the parties agreed to settle the Action to fully, definitively and permanently resolve all claims asserted against Auxly, subject to approval of a written Settlement Agreement by the Court at the Settlement Approval Hearing.
The Settlement
The terms of settlement (“Settlement”) include the payment of $4 million CAD on behalf of the Defendant, a full and final release of all claims that were asserted or could have been asserted against the Defendant by class members in the Action, and the Defendant’s express denial of any liability in respect of the claims alleged in the Action and of any kind whatsoever.
If the Settlement is approved at the Settlement Approval Hearing, a further notice will be published which will include instructions on how Class Members can file Claim Forms online to participate in the distribution of the net settlement funds and the deadline for doing so.
The Class
If you acquired common shares of Auxly, on or after November 12, 2018, and held some or all of those shares until at least February 6, 2019, you will likely be entitled to participate in the settlement after the Court has approved it.
Objections
At the Settlement Approval Hearing, the Court will consider any objections to the proposed Settlement by the Class Members if the objections are submitted in writing before October 20, 2023 in the manner described in the Notice.
Attending the Settlement Approval Hearing
Class Members may attend the Settlement Approval Hearing whether or not they deliver an objection. The Court may permit Class Members to participate in the Settlement Approval Hearing whether or not they deliver an objection. Class Members who wish for a lawyer to speak on their behalf at the Approval Hearing may retain one to do so at their own expense.
Questions
Berger Montague (Canada) PC is a law firm that investigates, litigates and resolves economic and financial disputes.
Questions for the Class Members’ lawyers may be directed to:
Berger Montague (Canada) PC
330 Bay Street, Suite 1302
Toronto, ON M5H 2S8
Tel: 647.598.8772 ext 2
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