SALEM, Ore., Nov. 12, 2019 /CNW/ -- GreenBloom Cannabis Co., an Oregon based cannabis operator, is announcing the filing of litigation against Orchid Ventures, Inc. (CSE: ORCD) (OTC: ORVRF) and its CEO, Corey Mangold. The litigation, filed in private arbitration on November 6, 2019, alleges that Orchid failed to meet its financial obligations to GreenBloom under the First Amended and Restated Asset Purchase Agreement dated July 29, 2019, and further alleges that Orchid and Mr. Mangold have defamed GreenBloom via false statements Orchid made in a press release dated October 28, 2019.
"While I would have preferred to deal with Orchid's inability to pay their obligations in private, the reality is Orchid is a publicly traded company and they have an obligation to be honest and forthright with their shareholders, investors and employees, and unfortunately they have failed to meet that obligation. They knew they needed to disclose that they failed to make the first payment to GreenBloom under the asset purchase agreement, and yet, against the advice of their in-house counsel and their outside Canadian counsel, failed to disclose that key information. Instead, after missing that payment - which put Orchid in default - they proceeded to raise additional funds based on the GreenBloom deal and even went as far as having a press event on September 25, 2019 in Calexico, California, the day after they acknowledged to GreenBloom they would miss the payment. I feel badly for the Orchid shareholders, but I will not stand idly by and watch our company and hard-working employees be recklessly slandered in the service of covering up Orchid's own failures. I am confident that the truth will be brought to light in litigation. For these reasons and others, GreenBloom's relationship with Orchid must come to an end," said George Mattia, CEO of GreenBloom.
Press inquiries may be directed to Kevin Jacoby at GreenBloom Cannabis Co. ([email protected]).
SOURCE GreenBloom Cannabis Co.