Per CANN 8-K:
ITEM 8.01 OTHER EVENTS
On September 25, 2014, the Company filed a lawsuit in the United States District Court for the District of Colorado against Stephen G. Calandrella (“Calandrella”) in order to recover the profits Calandrella obtained through short-swing trading in the Company’s common stock. Such profits, which the Company believes Calandrella obtained unlawfully, are rightfully owed to the Company. The Company brought the lawsuit against Calandrella under section 16(b) of the Exchange Act.
According to the complaint filed in federal court, Calandrella failed to report all of his holdings of the Company’s common stock to the Company. Instead, while a principal stockholder, he engaged in a series of purchases and sales of the Company’s common stock within a six-month period in violation of federal securities law. Pursuant to section 16(b) of the Exchange Act, the complaint demands that Calandrella return to the Company his profits on such trades with interest. The lawsuit is captioned Advanced Cannabis Solutions, Inc. v. Stephen G. Calandrella, Colorado District Court Civil Action No. 14-CV-02649.
As previously announced, on March 27, 2014, the Securities and Exchange Commission temporarily suspended trading in CANN common stock. The Securities and Exchange Commission’s stated reason for the stop trading order was that “[t]here are questions regarding whether certain undisclosed affiliates and shareholders of Advanced Cannabis common stock engaged in an unlawful public distribution of securities.”
As a result of that suspension, the Company was delisted from the OTC markets. In attempting to get relisted on the OTC Bulletin Board, the Company learned that Calandrella’s conduct was a subject of the regulatory action that led to the temporary suspension and subsequent delisting of ACS stock. The Company began an investigation into Calendrella¹s activities. The Company¹s investigation is ongoing.
The Company continues to work with all applicable agencies to seek active quotation of its common stock.
