ACOA suing biotech firm

Ryan Ross
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Federal agency claims Stirling Products owes $570,000

The Atlantic Canada Opportunities Agency is suing Stirling Products North America Inc., claiming it owes more than $570,000 from different projects.

The Atlantic Canada Opportunities Agency is suing a biotech company that did business in P.E.I., claiming it owes more than $570,000 from different projects.

In an unusual move, ACOA took out an advertisement in The Guardian to give Stirling Products North America Inc. notice of a claim against it.

ACOA filed its statement of claim Oct. 18, 2012, and the courts hadn’t received a response as of Tuesday afternoon.

When a defendant is served with a statement of claim, they have 20 days to respond with a statement of defence or notice of intent to defend.

That period extends to 40 days if they are served in another part of Canada or in the United Stated and 60 days if the defendant is outside Canada or the United States.

The statement of claim filed with the P.E.I. Supreme Court said the company’s registered office was in Charlottetown and its last known business address was in Nova Scotia.

Stirling Products was formerly known as Progressive BioActives Inc.

ACOA claimed Stirling Products owes money from two different projects for which the company failed to make payments in accordance with the terms of their agreement.

According to the statement of claim, ACOA demanded Stirling Products repay the total amount contributed, minus what the agency had already received.

The claim also sought an additional $2,560 plus interest and non-sufficient funds fees along with other costs in unspecified amounts.

None of the allegations have been proven in court.

rross@theguardian.pe.ca

twitter.com/ryanrross

Organizations: Atlantic Canada Opportunities Agency, Stirling Products North America, P.E.I. Supreme Court

Geographic location: Canada, United Stated, United States.The Charlottetown

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Comments

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Recent comments

  • Observer
    February 06, 2013 - 22:55

    Don't these people handing out the money ever learn? It is bizarre! They might as well rake the money into piles and burn it as continue to fund these fast talkers. It is time to get out of the venture capital business. I can think of one long term success story as a result of this funding and hundreds of failures. Someone should tally it all up and tell this whole sad stupid story.

  • Equalization Tax Payer
    February 06, 2013 - 21:33

    ACOA SUING TO RECOVER PUBLIC FUNDS IS A GREAT STORY !!! I hope they do the same to recover the public tax money that flowed to the UPEI - TRC and directly into a private bank account according to recent charges iin court by the CRA.

  • oliver
    February 06, 2013 - 21:19

    Who is Sterling Products? -- who owns it? who is on the board? and what exactly do they make?? Is the Province loosing our money too? --- usually if one is in, so is the other. Welcome to PEI and a bunch of loosers running the show.

  • howard
    February 06, 2013 - 21:13

    so many questions, - so few answers, -- we are just taxpayers not allowed to know what is going on. I will however say that it is a wonder not more losses are happening. ACOA PEI is run by a political appointee, with no business background what so ever, got the job through patronage when he left as Pat Binns right hand man. Same as Ghiz, we put an inexperienced boy in charge of ACOA, thanks to Harper and all the boys. We are a salary of $ 125. 000 a year for this mismanagement, --- like McAdam he spend month to become bi-lingual, don't know if he ever made it, --- that cold be fudged any time, ---- so keep on toiling, folks -----

  • Gerard W.
    February 06, 2013 - 20:45

    More CORRUPTION by this Liberal Govt.......... It is unbelievable how this Ghizzy guy is wasting our tax dollars, and his don't care attitude.

    • huh
      February 07, 2013 - 16:12

      Of course, you do know that ACOA is a federal department with nothing to do with Ghiz, right?

  • John Getson
    John Getson
    February 06, 2013 - 17:15

    Stirling Products (ASX:STI) has also acquired a near new state-of-the-art pharmaceutical manufacturing facility in Cape Breton, Canada at a significant discount to replacement value. Cost of the facility was CAN$3.6M - a fraction of replacement value, estimated to be in excess of $20M. As security for the acquisition, the Company has provided a Company guarantee Stirling was able to acquire the facility on these advantageous terms due to the collapse of a significant Canadian pharmaceutical group and its institutional International lender. The facility is fully operational and licensed and following formal registrations, With the current fit-out and configuration the plant, which is fully cGMP compliant, has an annual capacity to manufacture and package over 550 million tablets, 5 million bottles and blend up to 1.5 million kg of product. It also has a granulating and grinding capacity. Stirling will use the facility to exploit a number of third party contract generics manufacturing opportunities.

  • Tom Paine
    February 06, 2013 - 15:08

    seems to me ACOA (and the Government of PEI) decided to pour ADDITIONAL funds into this company, despite the allegations and likelihood of fraud. But we were told it would "save jobs" and was a "worthwhile investment." Bill Kays is absolutely correct. .

  • Bill Kays
    Bill Kays
    February 06, 2013 - 14:53

    They have mismanaged our money, as usual, and yet there are no resignations. WHY NO RESIGNATIONS over this crap. If it was me or you doing what big gov is doing we would be in jail already. All of this stuff can't be just accidental mismanagement of public funds. So what is it? Are theycapable or incapable of making intelligent decisions on our behalf? Can I really trust this government, provincial or federal? Is it just plain old stupidity or they all out to lunch drinking the emperors koolaid?

  • Lawyers suing anywhere in PEI dead economy
    February 06, 2013 - 14:31

    What about a spreadsheet showing all the lawsuits going on in PEI. ACOA is being sued by Kevin Macdam, Maritime Electric in suit with Summerside, Ghiz suing over Polar, Many suing Homburg, Immigrants suing IIDI, Convention centre suing Irvings, among many other suits. We need a running scoresheet in the business section. Are the lawyers in PEI sue happy or just short of real work?