Sunniva Inc (CSE: SNN) provided a small update related to its liquidity position this morning, announcing that the firm had secured a small short term loan as a means of keeping whats left of its operation going. The funding comes from an undisclosed private equity partner.
The loan is for a total net amount of USD$477,803, and comes from non-bank private lender. The funds obtained have a maturity of twleve months from the date of issuance, and have an interest rate of 12%. The funding is secured against Sunniva’s warehouse located in Long Beach, California. A gross amount for the financing was not provided by the company.
Additionally, the firm has seen a director step down from the company’s board. Luke Stanton has left the firm effective February 19, 2020, however he will continue to advise the firm on legal matters.
Similar to other companies in the cannabis industry, we are struggling to find capital raising opportunities to fund our ongoing expenses and debt obligations. This loan is one of the cash generating initiatives that we have been pursuing; however, our stakeholders should understand that as previously disclosed Sunniva continues to face significant business and financial challenges.
Dr. Anthony Holler, Chairman and CEO of Sunniva Inc
The funding follows last months announcement that Sunniva would be shuttering certain operations within California as a means of conserving its remaining cash.
Sunniva Inc last traded at $0.24 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.
