True Leaf Brands Inc (CSE: MJ) has initiated preparations for restructuring proceedings. As a result, the company is pursuing creditor protection via Notice of Intention, a method available under the Bankruptcy and Insolvency Act of Canada.
Pursuant to True Leaf’s receipt of a Notice Event of Default, Investigation of Event of Default and Reservation Rights, the company has filed a Notice of Intention Proceeding. The proceeding will safeguard True Leaf’s assets for a period of 30 days from various creditor’s claims. Utilizing this proceeding, the company is anticipating to re-orientate its indebtedness and get its finances in order.
The Notice of Intent proceeding will be overseen by FTI Consulting Canada Inc, who will act as the company’s proposal trustee. Furthermore, the proceeding also comes affixed with the option to increase the 30-day limit, but such an amendment would need to be approved by the Supreme Court of British Columbia.
Lastly, True Leaf’s Chief Financial Officer, Darren Battersby has stepped down effective immediately, and has been replaced by Jennifer Pace. Jennifer has over 18 years of experience with financials for both private and public companies. She holds both a MBA and CPA designation.
True Leaf Brands Inc is a Canadian licensed cannabis producer, focused on the development of products for people and pets. The company is currently trading at $0.02 on the CSE.
Information for this analysis was found via Sedar and True Leaf Brands 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.