By all accounts, it appears that RavenQuest BioMed (CSE: RQB) wasn’t exactly forthcoming in their previously announced “expenditure reduction” that the company released to public markets on January 17, 2020. As it turns out, the company’s Alberta Green Biotech subsidiary had assets seized by their landlord on this date as a result of non-payment.
To be fair, RavenQuest outlined several “reduced expenditures” within the news release while not identifying the seizure itself. To review, the firm’s press release states:
“RavenQuest BioMed Inc., Canada’s leading cannabis technology innovator, today announced that, as part of an overall strategic and cost review plan, it has made significant reductions in staffing ranging from onsite workers to corporate office employees. Further RavenQuest has reduced office expenses and is negotiating leases on both of our production facilities, in a path to reduce cash burn and shorten its pathway to profitability and a strong balance sheet.“
While not exactly forthcoming, to be fair, the company did identify that significant staffing reductions had occurred at the company, as well as reduced office expenses. However, stating that leases were being renegotiated as a result of an asset seizure is a bit of a stretch.
The assets were seized under “landlord distress” for an owed amount of $410,464.58. The landlord, Fourell Edmonton, had the enforcement conducted by Consolidated Civil Enforcement Inc on January 17, with the action registered on January 20, 2020. Given that the real estate itself wasn’t owned by Alberta Green Biotech, a number of production assets were seized by the company due to non-payment. Assets seized included:
- All Cannabis Plants/Cluster and Dried Cannabis located on Debtor Premises.
- 336 Orbital Gardens – 7 units per room consisting of 6 gardens/units called a cluster. Only 126 Orbital Gardens in operation.
- 2 Stainless Steel Drying Carts c/w trays
- 20 Boxes of Assorted Nutrients Products
- 45 Boxes of Sun Blaster LED Grow Lights
- Hotsy Commercial Pressure Washer Model # 772 – S/N: 11090370-162181 c/w sprayer/hoses/etc.
- 1 LG Dryer S/N: 809KWTA4K697
- 2 SS Wire Shelf Units approx. 3′ x 5′ x 2′
- Additional items not disclosed within filing
RavenQuest has yet to release the news of the asset seizure to the public markets. No information of the seizure has been included in subsequent filings made by the firm to the best of our knowledge. The company is currently under a management cease trade order as well due to failing to file annual financial results on time.
Further muddying the waters on what exactly has happened at the Alberta Green Biotech facility, is that on February 12, the company announced that they were harvesting plants at the Edmonton facility. Whether this was under supervision by the landlord to ensure no property disappeared, or whether there was a later negotiated settlement is unclear at this time.
Calls to RavenQuest’s corporate communications were not answered, nor were the calls returned.
The full asset seizure documentation can be found here.
RavenQuest Biomed last traded at $0.045 on the CSE.
Information for this briefing was found via Sedar, Government of Alberta, and RavenQuest Biomed. 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.