Green Growth Brands Files For Creditor Protection, Agrees To Sell Florida Assets

Green Growth Brands (CSE: GGB) has finally caved. The company this morning announced that it has applied for insolvency protection under the Companies’ Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice. Under the arrangement, Ernst & Young will act as the monitor, while, unsurprisingly, All J’s Greenspace will provide a debtor-in-possession loan facility.

Green Growth Brands Logo

All J’s will fund the company through an initial loan of US$1.0 million, while an additional $6.2 million will be made available for borrowing following the initial period of 10 days, upon court approval. The company also intends to enter a sale and investment solicitation process, with All J’s intending to provide a stalking horse bid. Given that All J’s owns all proportional voting shares of the company, its unsurprising that the firm would want to move to secure its own assets given the capital it has infused into the failed cannabis company.

Under the stalking horse bid, All J’s Greenspace will propose to bid on the currently outstanding S$45,500,000 aggregate principal amount of 15.00% secured convertible debentures that matured May 17, 2020, as well as S$23,717,000 aggregate principal amount of 5.00% secured convertible debentures maturing in 2024. It should be noted here however that it is believed that All J’s is currently the sole owner of the the 5% secured convertible debentures.

Furthermore, the company also announced that it has entered into a forebearance agreement in relation to its Florida assets. Green Growth had previously defaulted on its amended security agreement, which was amended just weeks ago on April 29. The secured creditor, Green Ops Group, has agreed to not foreclose on the property until June 15, 2020, as well as loan $500,000 to GGB as a means of covering certain debt payments owed on the property.

In conjunction with this arrangement, Green Growth has agreed to enter a sales process for the Florida assets, with the goal of disposing of the assets by June 15. If the company fails to find a buyer in this time period, they have agreed to the foreclosure of the property to the original vendors.

Green Growth Brands last traded at $0.055 on the CSE.


Information for this briefing was found via Sedar and Green Growth 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.

Video Articles

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Resources Intersects Further Mineralization At El Cura, Expanding Deposit

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

Related News

#Potstocks Earnings Roundup: May 29

As we alluded to in an article released Monday morning, there were a number of...

Thursday, May 30, 2019, 07:00:51 AM

BZAM Ltd, Successor To TGOD, Files For Creditor Protection

Yet another Canadian cannabis operator is waving the white flag. BZAM Ltd (CSE: BZAM), whom...

Thursday, February 29, 2024, 08:58:03 AM

Horvath Leaves Role As CEO At Green Growth Brands

Green Growth Brands (CSE: GGB) released a corporate update this evening, identifying that chief executive...

Thursday, March 19, 2020, 06:04:49 PM

Rough Week In Cannabis Sector Capped With Gut Punch From Ontario

This first week of April has been the never-ending week for the cannabis industry that...

Friday, April 3, 2020, 03:24:27 PM

Green Growth Brands Sees Interim CEO Resign, Office Staff To Take Over Role

What do you do when things have become so bad that no one wants to...

Wednesday, September 30, 2020, 10:58:42 AM