Sunniva Shutters Subsidiary Operations To Conserve Funds
Sunniva Inc (CSE: SNN) announced that it is shuttering the operations of one of its subsidiaries this morning in a bid to further conserve cash. The firm is currently working on reallocating any of its cash to the legal fight it is currently in related to the Sunniva Production Campus in Cathedral City, California.
The subsidiary being shuttered in is that of Full-Scale Distribution, LLC. The firm was acquired pre-RTO in 2017 for a total figure of $6.5 million, of which $2.0 million was an initial cash component. Its unclear specifically what function the subsidiary performed for Sunniva, although it was previously a revenue generating unit of the issuer.
While Sunniva still claims that it has a strong legal position related to the build to suit lease of the California Campus, whether it has the funds to fight such a battle is another question. The company itself is currently caught up in legal battles in both Canada and the US related to funding issues, and whether the issuer will be able to see any case through to the end is questionable at best given the current state of the firm.
Ceasing of operations of Full-Scale Distributors LLC is anticipated to be complete by the end of February.
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.
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