The way I see it is that they had no choice but to follow through with legal action. If they did not then it would be an admission of incompetence or that the deal was flaky to start off with.
Doesn't a minimum of $0.5 mio compensation reek of defeatism when they have 3 signed agreements worth $40 mio to you? I'll tell you what it means to me and that is they believe that have not a show in hell of getting anything. It will cost over $0.5 mio before the hearing even gets underway let alone the cost of the case and the distraction.
Thinking that the Canadian company would want to buy into the derma company and also buy into a legal battle is a bit far fetched. Seriously?
I reckon the Canadian connection will be just another distribution and sales agreement to add to the others they already have with other organisations. You can have as many of these as you like but unless you have product to distribute they are useless.
Extended voluntary suspension may also mean that they have shot their mouth off before tying down the terms of an agreement.
MXC Price at posting:
4.8¢ Sentiment: Hold Disclosure: Held
