Sunniva Reverses Transactions, Ceases Extraction Operations

It seems that Sunniva Inc (CSE: SNN) is pretty well at the end of the line. The company announced this morning that it will be reversing two transactions related to membership purchase agreements that took place last year, in addition to ceasing extraction operations at the Cathedral City facility.

Sunniva Inc's Logo

The reversal of transactions will see its wholly owned subsidiary CP Logistics, LLC, reverse agreements dated April 29, 2019. Within those agreements, the company had agreed to purchase 80% interests in both 420 Distribution, LLC and Coachella Distillation, LLC, from a firm called Group Two Investments. Under the new arrangement, those membership interests will be returned, along with the original purchase price which is said to be not material.

CPL as a result will see its name removed from any associated licenses held by 420 and Coachella, and Sunniva will have no ongoing obligations with them.

Further, the company will also be stopping all operations at its extraction and distribution facility. Further, the company is also “evaluating opportunities” to sell off packaging and extraction equipment from its California facilities – signaling what amounts to the end for the corporation as a whole.

Sunniva Inc last traded at $0.16 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.

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