Capital Mining Ltd. reached a settlement with Broken Coast Cannabis Ltd. over a dispute over a deal for the former to acquire up to a 50.1% stake in the latter.
Under the deal, Broken Coast agreed to pay C$250,000 to Capital Mining to settle the matter.
Capital Mining will also retain the rights to negotiate an investment in Broken Coast for a 90-day period following the execution of the settlement agreement.
In September 2016, Capital Mining took Broken Coast to court after the latter failed to repay a C$500,000 loan upon termination of an acquisition deal.
Capital Mining noted that it may also pursue other high quality, value accretive opportunities in the rapidly emerging medicinal cannabis sector, in addition to a potential investment in Broken Coast.
Additionally, the company has established an unlisted public company, Capital Cannabis Ltd., which will own and manage any material medicinal cannabis opportunities secured by Capital Mining.
Moreover, the company appointed Cameron McDonald-Stuart as a nonexecutive director to assess the merits of any potential medicinal cannabis opportunities.
Capital Mining, however, will retain a core focus on the exploration and development of demand-driven commodities.