Pure Global Cannabis (TSXV: PURE) announced this evening that it has received creditor protection as of March 19, 2020 following an application made by the company for protection under the Companies’ Creditor Arrangement Act.
The granting of creditor protection was viewed by the firm as the best method of maximizing stakeholder value while addressing near term liquidity issues. Protection under CCAA enables the firm to continue operating while it sorts out its liquidity issues. As part of the arrangement, the company has secured a $700,000 term sheet for a debtor-in-possession loan from that of Hillmount Capital.
Notably, Hillmount is also the firm used by Wayland Group as they went through the CCAA process, which is the issuer from which current CFO Scott Langille hails. At the time of his appointment, it was identified that Langille would be directly responsible for closing a number of ongoing financings that Pure Global was engaged within. The loan facility, for which the term sheet was signed on March 18, could potentially expand to up to $4.0 million with approval from the court.
Despite entering creditor protection, Pure Global claimed that they continue to have “strong fundamentals” and that they are near reaching milestones for the next phase of operations which includes commencing revenue generating operations in the near term. The firm expects to remain paying debt obligations as they come due.
Pure Global last traded at $0.02 on the TSX Venture.
Information for this briefing was found via Sedar and Pure Global Cannabis. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.