Borealis suing NIM for sale of shares

In the law suit, Borealis is alleging breach of contract and the wrongful removal of 674,870 Borealis shares from escrow.

The lawsuit relates to a recent transaction in which Borealis says it agreed to exchange 843,588 shares of Noble Peak Resources (ASE) for a 22.8% Borealis control block previously held by NIM.

When the transaction occurred, Borealis shares were trading at around $2.50 while shares of Noble Peak were trading at approximately $2.00.

According to Borealis President Rodney Cox, the Noble Peak and Borealis shares were placed in escrow with Gary A. MacDonald and Vancouver law firm Ferguson Gifford.

But after the Borealis shares climbed to $9.50, NIM allegedly reneged on the agreement by withdrawing the Borealis shares from escrow without regulatory approval and selling them on the market. As a result, Cox said legal proceedings have been launched in the British Columbia Supreme Court for return of the shares to Borealis and or damages.

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