Shane Allen, an investor in Vancouver’s first licensed cannabis dispensary, is suing Wealthshop Retail Ltd. and others, claiming loans and investments haven’t been paid back after original directors were allegedly forced out “through the use of intimidation and threats of violence.”
Allen filed a notice of civil claim in BC Supreme Court on May 30, naming 1046296 B.C. Ltd., Harkrishan Singh Sidhu, 1004273 B.C. Ltd., Harcharan Kaur Sidhu and Wealthshop Retail Ltd. as defendants.
Allen claims he invested in and provided financing in Wealthshop in exchange for shares in one of the numbered-company defendants, which was set up to provide a “conduit for investment in Wealthshop.” He claims he provided $30,000 between June 2016 and January 2017 for a 20-percent stake in 1046296 B.C. Ltd., which held a half-interest in the shares of Wealthshop. The dispensary received a license to operate from the city in May 2016, the lawsuit says, but experienced cashflow issues shortly after opening. Allen claims he allowed the company to use his credit card to “further remedy Wealthshop’s cash flow problems ... given Wealthshop’s nascent stage of development and the limited cash flow and capital available to the company."
However, Allen claims he was never issued shares in the numbered company, and demands to have the loans paid back and shares delivered have allegedly been refused by defendant Harkrishan Sidhu.
