DionyMed Brands to Enter Receivership

DionyMed Brands (CSE: DYME) put out a release this afternoon indicating that they have received a petition filed by GLAS America with the Supreme Court of British Columbia. The petition is seeking the appointment of a receiver for DionyMed’s assets following the Notice of Default issued earlier this month, and the subsequent Notice of Intention to Enforce Security.

The default, and subsequent petition for receivership is in relation to certain funds owed to GLAS America and its affiliates. The lender and DionyMed had initially entered a credit agreement back in mid January, when the issuer announced up to $40 million in secured financing. At the time, the funds were put towards general working capital, future acquisitions, and the refinancing of certain debts that they had.

However, DionyMed’s operations have not performed as planned, and as a result the firm was unable to make interest payments on the debt it had amassed with the lender. As of today’s news release, DionyMed indicated that it owes roughly US$24,810,682.80 to the firm, however interest is still accruing on that debt.

This afternoons announcement only furthers the spiral exhibited by the issuer, who last month had initially announced a restructuring with the same lender on its debt. However, the company has since spiraled even further, losing its CEO and interim COO last week, the latter of whom had only been on the job for approximately a month.

DionyMed Brands is currently trading at $0.035 on the Canadian Securities Exchange. The equity is currently halted.

Information for this briefing was found via Sedar and DionyMed Brands. 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.