Sunniva Inc (CSE: SNN) released a relatively obscure press release this morning, indicating that it had received notice of an ex parte filing in the state of California against its subsidiary CP Logistics, LLC. The filing, conducted by Sunniva Production Campus, LLC, further muddied the waters of what exactly the release was trying to say. What is clear within the release is that a motion to secure funds has been made within the courts.
To fully understand what is being said here, some digging was required on our part. For those unaware, ex parte is a latin term for “on behalf of.” Essentially, within certain jurisdictions, it means that the courts allow for a hearing where only one party to the issue at hand is present. Within the USA, such hearings are only permitted in certain jurisdictions, of which California is one. Under the ex parte process in California, a proceeding can occur if the party alerts the other party about the proceedings before 10 a.m. local time. Such a proceeding is only permitted under conditions which may result in “irreparable harm, immediate danger, or any other statutory basis for granting relief ex parte.” Thus, the hasty release this morning by Sunniva.
With respect to the firms involved, Sunniva Production Campus, as per OpenCorporates is owned by Graceland Matrix Partners LLC, who has the same listed address as that of Barker Pacific Group, the entity behind Sunniva’s California Campus construction and leasing agreement which was recently terminated. CP Logistics, a wholly owned subsidiary of Sunniva, is the firm that owns the necessary licenses in the state of California for the purpose of cannabis manufacturing and extraction.
Thus, Barker Pacific has moved to secure assets of Sunniva as a result of a default on a secured promissory note. As of September 6, 2019, the figure owed was stated to be US$2,606,815.95, which will have grown as a result of an annual interest rate of 12% being assigned to the debt. The monies were due as of August 11, 2019.
The news of the move to secure assets follows the announcement that Sunniva has been served with a notice of default related to $7.9 million overdue in a separate promissory note. It’s unclear at this time if the lender is also Barker Pacific in that case.
Sunniva last traded at $0.25 on the CSE.
Information for this briefing was found via Sedar and Sunniva Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
