That's a thorough, powerful filing by VYST today:
Thanks for sharing. Just a few thoughts:
There is nothing surprising in there to cause me any concern about the status of VYST and its plans to consolidate/merge with Rotman's. In fact, just the opposite. The filing relies on some of its actions taken towards the consolidation/merger to affirm its financial viability. That was nice to read.
At the heart of this legal garbage with EMA is the fact that EMA with the aid of the first Transfer Agent took shares VYST claims EMA was not entitled to. Upon discovering this VYST fired the first Transfer Agent and hired a second, then demanded relief from EMA. EMA instead filed its suits and here we are.
As I stated in a post a while back, it has appeared to me quite likely that EMA made a serious mistake, either a mistake or intentional, and facing the risk of both financial and legal consequence, realizing the risk they face, EMA has tried to spin the facts as best they can, and has done all they can to rush things thru so as to avoid a full hearing of the facts, filing for injunctive relief and if that fails summary judgment.
EMA lost the hearing for injunctive relief. That was the hearing a few fridays back.
Today's filing by VYST is in opposition to EMA's request for summary judgment, and though not an attorney, IMHO VYST's filing today is persuasive and powerful, likely to be successful.
Once the judge rules on EMA's request for summary judgement, likely to be another loss by EMA, VYST will then have the opportunity to take all the facts to a full hearing for a final determination. Which from all that I have read is heavily and clearly in VYST's favor, again IMHO.
I would add one other fact. VYST apparently has the right and some here have said the intention to file a counter suit, claiming their own damages and possibly resulting in EMA having to buy back the excess shares they took in the open market so as to return them to VYST. This risk in a rising share price environment would appear to be a big risk for EMA, some here speculating it might result in settlement. (Note: It is unclear to me if VYST has or might request at the upcoming summary judgement hearing a ruling on summary judgement in its favor, ending it all right there, but from my reading of this, I believe it is in VYST's favor to go to full hearing where they can make their full case)
Bottom line, EMA is failing in its efforts to rush this thru; VYST won the first hearing on injunctive relief, appears well positioned with today's filing to win the second hearing against summary judgment, and ultimately would appear to a reasonable person to have the facts on its side for the final hearing determination. I would not be surprised if it hasn't already happened by then, if EMA loses its request for summary judgement, they will likely want desperately to settle.
And just a reminder as to context regarding this EMA/VYST legal issue. I believe we are only talking about maybe 5% of VYST's o/s, so though something VYST needs to pursue, and likely will win, it is a drop in the bucket compared to the upcoming consolidation/merger, making this EMA hearing a side issue of distant secondary import.
