Court sides with psychedelic biotech, over hedge fund | Cannabis Law Report | How to order Skittles Moonrock online

An Ontario court denied a hedge fund’s request to adjourn and delay a company’s annual meeting, amid allegations that the company had engaged in “oppressive conduct” against the fund. The court ruled that the company complied with the law in calling the meeting, and indicated that courts shouldn’t be quick to intervene.

According to a decision of the Ontario Superior Court of Justice, a hedge fund, Kaos Capital Ltd., brought an urgent application, asking the court to delay the planned annual meeting of a biotech company, Psyence Biomedical Ltd. (PBM), citing concerns about the circumstances surrounding the meeting. The company is purportedly developing “psychedelic” medicines.

The court said that the hedge fund sought an order delaying the company’s shareholder meeting until Feb. 22 at the earliest, arguing that the notice provided to shareholders about the meeting didn’t comply with legal requirements, and arguing that the short notice prevented it from nominating directors.

However, the court rejected those arguments, finding that the meeting was called in compliance with the statutory requirements in this area.

On that count, the court found that the meeting was properly convened because the company was only required to provide 10 days notice to shareholders under the law.

It noted that, while the company is based in Toronto and registered in Ontario, it’s traded on the Nasdaq and makes regulatory filings with the U.S. Securities and Exchange Commission (SEC), so it’s not considered a public issuer in Ontario, and falls into the category of “other companies,” which only have to provide 10 days notice to shareholders.

“PBM met this technical requirement,” the court said — adding that the company also provided shareholders with information for the meeting in compliance with the legislative requirements.