On
Six months later, on
But the announcement was disingenuous because no such search was conducted, or ever needed because Skye is a company within the Emerald group of companies. Both Skye and Emerald are controlled by
Other problematic facts include:
- Skye is a borrower of Sciences and owes it
$2.5 million , and as such brings no financial benefit to Emerald under the Plan. Skye has incurred significant losses and expects to continue to incur significant losses and negative cash flow from operations in the future. In contrast, Emerald had cash reserves of approximately$16 million as atMarch 31, 2022 , and owns significant non-cash assets, including those of its principal subsidiary VerdéliteSciences Inc. ("Verdélite"). - No independent valuation of Skye or Emerald has been conducted or is proposed. The value of Emerald is significantly higher than the value of Skye, yet the directors of Emerald intend to saddle Emerald shareholders with Skye's liabilities and dim prospects, which can only benefit the insiders and related parties of Skye.
- Emerald shareholders have been harmed by poor management and imbedded conflicts of interest with the Dhillon family managing its affairs, and has lacked and continues to lack, qualified independent management executives with a track record of operating profitable enterprises.
- Of particular concern is
Avtar Dhillon , a former long-term executive in all three companies, who was arrested by the FBI for securities fraud onAugust 6, 2021 , and has also been charged by theUS Department of Justice ("DOJ") and theSecurities and Exchange Commission ("SEC") for securities fraud in connection with alleged pump and dump schemes carried out withFrederick Sharp . Sharp is accused of running aUS$1 billion fraud scheme inVancouver involving over 100 issuers. - Dhillon's nephew
Punit Dhillon is the CEO and chair of Skye, and according to their SEDAR filings, he has worked with one of the same issuers asAvtar Dhillon that are engulfed in the DOJ andSEC cases withFrederick Sharp . - The Opposing Shareholders are concerned that
Punit Dhillon will be involved in Emerald and become its CEO and chair, if the Plan is accepted. - The Emerald group is facing a new
SEC investigation in respect of another of the companies in its group,Emerald Health Pharmaceuticals Inc. ("Pharmaceuticals"), for suspected securities fraud. The same players –Avtar Dhillon ,Punit Dhillon andJim Heppell – were part of this entity as well as all the other three entities.Punit Dhillon is the director of Pharmaceuticals andJim Heppell is its chair. - These same two –
Jim Heppell andPunit Dhillon - were directors ofEmerald Health Bioceuticals Inc. , another member of the Emerald group of companies, when it filed for bankruptcy inCalifornia onOctober 20, 2020 . - Between 2015 and 2020, Emerald paid Sciences over
$15 million in professional fees for various management consulting services. Sciences is not a management consulting firm with any management consulting experts according to the research conducted by the Opposing Shareholders. The purpose of the payment of these exorbitant fees and its beneficiaries remain unknown. - Emerald has accumulated more than
$240 million in losses since 2015, while Sciences has cashed in on more than$50 million in fees paid and sales of Emerald shares, including a 2018 financing of more than 6 million shares sold for$5 per share. The shares have been trading at plus or minus5 cents for several months. - The following links to media reports are worth reading in addition to this release:
https://www.vancouverisawesome.com/bc-news/bc-cannabis-company-loses-bid-to-suppress-disaffected-shareholder-5410361
https://www.richmond-news.com/bc-news/time-ticking-for-vancouver-man-charged-in-1b-international-stock-fraud-scheme-4767826
The Opposing Shareholders are recognized entrepreneurs and business leaders who have successfully navigated the cannabis ecosystem for many years. They are the founders and former owners of Verdélite, formerly known as
The Opposing Shareholders oppose the Plan and the continued involvement of the Dhillons in the management of Emerald, as well as the continued involvement of
The Opposing Shareholders call upon the securities authorities to take prompt action and reissue the management cease trade order of Emerald shares, and postpone the annual and special meeting of shareholders. They intend to exercise all legal rights available to them to oppose the Plan, remove legacy executives from Emerald and improve the outlook and prospects for all the shareholders of Emerald.
The information contained in this press release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable corporate or securities laws or otherwise.
Shareholders are not being asked to execute a proxy in support of the Opposing Shareholders opposition to the Plan or any other resolution relating to the annual general and special meeting of Emerald to be held on
SOURCE Concerned Shareholders of
© Canada Newswire, source