NEW YORK, December 30, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Instadose Pharma Corp. f / k / a Mikrocoze, Inc. (âInstadoseâ, âMikrocozeâ or the âCompanyâ) (OTCMKTS: INSD; MZKR) and one of its officers. The class action, filed in United States The District Court for the Eastern District of Virginia, Division of Norfolk, and registered as 21-cv-00675, is on behalf of a class consisting of all persons other than defendants who have purchased or otherwise acquired Instadose securities between December 8, 2020 and November 24, 2021, both dates inclusive (the âClass Periodâ), seeking to recover damages caused by Defendants in violation of federal securities laws and to pursue remedies under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the âExchange Actâ) and rules 10b-5 promulgated by virtue of it, against the Company and one of its senior officers.
If you are a shareholder who purchased Instadose securities during the claim period, you have up to February 28, 2022 to ask the Court to appoint you as the principal plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [emailÂ protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
Instadose has no significant activities and has been classified at all relevant times as a âfrontâ company. Instadose was previously known as “Mikrocoze, Inc.” which was organized to sell micro-furniture for small spaces via the Internet. The Company has since pivoted its activities to focus on the growth and acquisition of pharmaceutical grade agricultural products.
At December 7, 2020, Instadose (then still known as Mikrocoze) entered into a non-binding letter of intent with Instadose Pharma Corp., a cannabis producer based in Canada (âInstadose Canadaâ), and the holders of the majority of its shares. outstanding for a transaction to acquire 100% of the outstanding common shares of Instadose Canada in exchange for approximately 80% of the issued and outstanding common shares of the Company as a result of such exchange (the âConsolidation of companies’).
The complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading representations regarding the Company’s business, operational and compliance policies. Specifically, the Defendants made false and / or misleading statements and / or failed to disclose that: (i) Instadose exercised inadequate due diligence in the Business Combination and / or ignored signals from important alarm associated with Instadose Canada; (ii) Instadose’s internal controls and policies were inadequate to detect and / or prevent unauthorized business activities by control persons of the Company; (iii) the foregoing has placed Instadose at increased risk of regulatory control and enforcement action; and (iv) accordingly, the Company’s public statements were materially false and misleading at all material times.
At July 9, 2021, the Ontario Securities Commission (âOSCâ) announced that the President and Chief Executive Officer (âCEOâ) of Instadose Canada, Grant Ferdinand Sanders (“Sanders”), was charged with a quasi-criminal charge of fraud relating to his role as President and CEO of Instadose Canada, which since july 2017, had lifted more than $ 9.4 million investors. The OSC alleged that investor funds were misappropriated for the benefit of Sanders, his family and associates, and that Instadose Canada significantly distorted the nature of its business.
Then on October 15, 2021, Instadose Canada has announced that an overwhelming majority of its shareholders have voted in favor of the business combination, which remains subject to customary closing conditions, including approval by a Canadian court. After the completion of the business combination, Instadose expected its board of directors to be made up of, among others, Sanders.
Then on November 24, 2021, in a filing with the United States Securities and Exchange Commission (“SEC”), Instadose revealed that “[o]m 23 November 2021, the Company was informed by the SEC that it had ordered, pursuant to Section 12 (k) of the [Exchange Act], that the trading of the securities of [Instadose] is suspended for the period of 9:30 a.m. EDT to November 24, 2021, through 11:59 p.m. EDT to December 8, 2021. âInstadose informed investors that the SEC order specifically stated thatâ it appears to [SEC] that the public interest and investor protection require a suspension of trading in [Instadose] securities. . . due to questions and concerns regarding the adequacy and accuracy of the information on Instadose. . . in the market, including: (1) significant increases in share price and share volume not supported by the assets and financial information of the company; (2) trade that may be associated with individuals related to an Instadose Control Person. . .; and (3) Instadose operationsaffiliated in Canada. “
At this news, and after the common shares of Instadose resumed trading on the stock exchange on December 9, 2021, the Company’s share price fell $ 22.61 per share, or 91.87%, to close at $ 2.00 per share on December 9, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
SOURCE Pomerantz LLP