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by Mike Caswell

Preveceutical Medical Inc. has filed a lawsuit in the Supreme Court of British Columbia against its former lawyer, Jonathan Lotz, claiming that Mr. Lotz was negligent in reviewing the company's disclosure. In particular, he failed to warn of regulatory risks associated with a June 29, 2018, news release about a private placement, Preveceutical says. That news release resulted in the company being named in a B.C. Securities Commission action that targeted Preveceutical and other Canadian Securities Exchange listings over abusive share issuances.

The allegations are contained in a notice of claim that Preveceutical filed at the Vancouver courthouse on Wednesday, June 5. The case arises from a controversial news release that the company issued on June 29, 2018, about a $6.5-million financing. On the surface, there was nothing out of the ordinary about the news. The company said that it was "very pleased to announce this oversubscribed placement" and that it planned to use the proceeds for research and development programs and for general working capital.

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