The death spiral of Sunniva Inc (CSE: SNN) is nearly complete, with the company announcing this morning that its 114-acre Okanagan Falls property is in default of its mortgage, with the creditor now having filed a petition in the Supreme Court of British Colombia in relation to the debt.
Sunniva initially entered into a mortgage arrangement in June 2018 in relation to its BC property, where it originally planned to construct a 792,000 square foot greenhouse. The mortgage was for an initial sum of $3.492 million and accrued interest at a rate of 5% per year. The mortgage itself was viewed as a short term loan, with the debt coming due on October 31, 2019. As of September 30, the company had only repaid $400,000 on the debt, and was in default on the loan due to non-payment.
Now, the creditor associated with the loan is looking for a declaration that the mortgage is in default from the courts as well as a defined time period for repayment in full to occur. If Sunniva does not pay the full sum in the defined time period, then the creditor will have the right to apply for foreclosure on the property.
Sunniva has 21 days to respond to the petition. The property remains party to a share purchase agreement with CannaPharmaRX in a transaction that was expected to close multiple times over the last several months.
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.
One Response
Shocked the NASDAQ let these guys go public on their exchange. What a mess!