Instadose Pharma Corp. f/k/a Mikrocoze, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of those who acquired Instadose Pharma Corp. f/k/a Mikrocoze, Inc. (“Instadose” or the “Company”) (OTC: INSD) common stock from December 8, 2020 through November 24, 2021, inclusive (the “Class Period”). Investors have until February 28, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Instadose was formerly known as Mikrocoze, Inc. (“Mikrocoze), which was organized to sell micro-furniture for small spaces via the Internet. The Company has since pivoted its business to focus on growth and acquisition of pharmaceutical grade agricultural products.
On December 7, 2020, Instadose (then still known as Mikrocoze) entered into a non-binding letter of intent with Instadose Pharma Corp., a Canadian-based cannabis producer (“Instadose Canada”), and holders of a majority of its outstanding shares for a transaction to acquire 100% of the outstanding common shares of Instadose Canada in exchange for approximately 80% of the issued and outstanding shares of common stock of the Company following such exchange (the “Business Combination”).
On November 24, 2021, in a filing with the United States Securities and Exchange Commission (“SEC”), Instadose disclosed that “[o]n November 23, 2021, the Company was notified by the SEC that it had ordered, pursuant to Section 12(k) of the [Exchange Act], that trading in the securities of [Instadose] is suspended for the period from 9:30 a.m. EDT on November 24, 2021, through 11:59 p.m. EDT on December 8, 2021.” Instadose advised investors that the SEC’s order specifically stated that “it appears to the [SEC] that the public interest and the protection of investors require a suspension in the trading of the securities of [Instadose] . . . because of questions and concerns regarding the adequacy and accuracy of information about Instadose  in the marketplace, including: (1) significant increases in the stock price and share volume unsupported by the company’s assets and financial information; (2) trading that may be associated with individuals related to a control person of Instadose ; and (3) the operations of Instadose ’s Canadian affiliate.” On this news, and after Instadose’s common stock began publicly trading again on December 9, 2021, the Company’s stock price declined by $22.61 per share, or approximately 91.9%, from $24.61 per share on November 23, 2021 to close at $2.00 per share on December 9, 2021.
The lawsuit alleges throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose to investors that: (i) Instadose had performed inadequate due diligence into the Business Combination and/or ignored significant red flags associated with Instadose Canada; (ii) Instadose’s internal controls and policies were inadequate to detect and/or prevent impermissible trading activity by control persons of the Company; (iii) the foregoing subjected Instadose to a heightened risk of regulatory scrutiny and enforcement action; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.