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by Mike Caswell
Aurora Cannabis Inc. has responded to a lawsuit over a $1.9-million stock option, saying that the option is no longer valid. Aurora says that it had granted the option to a U.S. consultant, but the consultant's agreement specified that the option would end 90 days after the work came to an end. Since that work ended in early 2016, the option is no longer worth anything, according to Aurora.
The statements from the company come in response to a lawsuit filed in the Supreme Court of British Columbia by Electrum Partners LLC of Las Vegas. The suit, dated Nov. 29, 2017, is over a stock option that Electrum claimed to have received in a March 16, 2015, consulting agreement. According to Electrum, the option was for 300,000 shares at 39 cents. The consulting agreement ended after one year, but the option was to be exercisable for five years, or until March 16, 2020, Electrum said.
According to the suit, Electrum sent a $117,000 cheque on Nov. 16, 2017, in an attempt to exercise the option, but Aurora refused to honour the agreement. Electrum claimed that the option was worth $1.9-million. It sought the reinstatement of the option or a court-ordered payment for its loss.
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